Ukrnafta paid over UAH 2,7 billion in taxes since the start of 2021
Ukrnafta paid over UAH 2,7 billion in taxes since the start of 2021

PJSC Ukrnafta paid UAH 2.74 bln in taxes to budgets of all levels during January-March 2021. This amount included the rent for subsoil use, VAT, excise duty and other taxes.

The state and local budgets of various levels received UAH 1.62 bln of royalties for the use of subsurface resources. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities’ budgets will receive UAH 81.2 mln. The largest revenues from Ukrnafta's rent will go to the budgets of Sumy, Ivano-Frankivsk and Poltava regions. The amount of rent paid to the local budgets depends on the volume of hydrocarbons production in the region and the price of hydrocarbons. The communities usually fund local infrastructure and social projects with rent revenues.

Ukrnafta is responsible for fulfilling its obligations and pays its taxes on time, as required by law. According to DFS and Rating magazine, Ukrnafta became the biggest taxpayer in 2020, paying a record UAH 47.5 bln to the budget, 253% more than in 2019.

Rent revenues to budgets of oblasts, raions and local communities, mln UAH

 

3 months 2021

Sumy oblast

33,4

Ivano-Frankivsk oblast

18,9

Poltava oblast

12,9

Chernihiv oblast

7,4

Lviv oblast

7,0

Kharkiv oblast

1,3

Dnipropetrovsk oblast

0,2

Chernivtsi oblast

0,1

Total

81,2

The rent sharing mechanism envisages that 95%of rent revenues go to the central public budget, while 5% - to the local budgets. The local rent revenues are split further with 2% allocated to the raions and 3% to the oblast and local communities where companies produce hydrocarbons. Thus, the rent sharing mechanism allows local communities to receive share of revenues from production of oil and gas.