Ukrnafta paid UAH 574 million in taxes in January
Ukrnafta paid UAH 574 million in taxes in January

In January 2021, PJSC Ukrnafta paid to the budgets of all levels in taxes in the amount of UAH 574 mln. This amount included the rent for subsoil use (for December 2020), VAT, excise duty and other taxes.

A total of UAH 494 million in rent was paid to state and local budgets at various levels for subsoil use. According to the rent sharing mechanism, established by law, the oblasts, raions and local communities’ budgets received UAH 28.7 mln. The biggest recipients of rent revenues from Ukrnafta were the budgets of Sumy (UAH 11.7 million), Ivano-Frankivsk (UAH 6.6 million) and Poltava (UAH 4.8 million) 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.

5% of rent revenues to budgets of oblasts, raions and local communities, mln UAH

 

In January (for December 2020)

Sumy oblast

10,2

Ivano-Frankivsk oblast

5,9

Poltava oblast

3,7

Chernihiv oblast

2,2

Lviv oblast

2,2

Kharkiv oblast

0,42

Dnipropetrovsk oblast

0,05

Chernivtsi oblast

0,02

Total

24,69

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.