The Cabinet of Ministers of Ukraine has approved amendments to the Methodology for Determining the initial price for the sale of special subsoil use permits.
This was reported by the Ministry of Environmental Protection and Natural Resources of Ukraine.
The main purpose of these innovations is to improve the mechanism for calculating the cost of permits.
What’s new
The amendments to the Methodology provide for:
-
comparison of indicators in permitting documents with those declared by taxpayers;
-
calculation of a weighted average price;
-
regulation that all data should be provided by the State Tax Service based on Appendix 1 of the Declaration “Rent calculation for subsoil use for the extraction of mineral resources” to the Rent payment tax declaration, taking into account only those indicators that have passed verification using the relevant algorithm.
From now on, a working group will participate in the price formation process. This group will include representatives of:
-
the State Service of Geology and Subsoil of Ukraine;
-
the State Tax Service of Ukraine (STS);
-
the State Commission of Ukraine on Mineral Resources (SCMR).
Together, they will analyze the obtained indicators and set the highest value as the initial price.
If the STS or SCMR lacks the necessary data, information from the official website of the State Service of Geology and Subsoil of Ukraine for the previous reporting quarter will be used. The working group will review and update the calculated indicators every quarter, taking into account changes in market conditions.
Another important innovation is that when calculating the initial price of a special subsoil use permit, it is now prohibited to use prices determined at the time of reserve approval if less than a year has passed since then. This ensures that up-to-date pricing data is used when forming the initial cost of permits. Previously, different valuation approaches could create unequal conditions for market participants.
Officials claim that the updated Methodology will ensure a unified approach that establishes fair competition and equal conditions for economic entities.
Why these changes are necessary
The main reason was the significant increase in the cost of special subsoil use permits in the summer of 2024. At that time, for certain types of mineral resources, permit prices rose more than a hundredfold, making it virtually impossible for small and medium-sized businesses to purchase such permits.
It is precisely for this reason that the government adopted amendments to the Methodology. They aim to prevent sharp, unjustified price fluctuations and make the calculation process more predictable for businesses.
Recently, EcoPolitic reported that business representatives have called for refraining from resuming scheduled inspections of subsoil users for the time being.
