Deputy Marina Zheinova shares details of work on law reducing tax burden on landfills
In the summer of 2018, the Committee on Environmental Management, Ecology, Subsurface Resources and Natural Resources took the initiative to consider in detail the practice of applying Kt and Katm adjusting factors, as well as the situation with increasing problems regarding the removal of solid waste by utilities.
Then a working group was created, which gathered the necessary information to form amendments at the legislative level. The work of the Committee on Budget, Finance and Economic Policy, headed by me, on the creation of a relevant draft law was the final one in this semi-annual process.
The DPR Law “On Amendments to the Law of the Donetsk People’s Republic “On the Tax System””, which entered into force on February 11, 2019, reduces the tax burden on landfills for solid domestic waste in cities and districts of the Donetsk People’s Republic due to the restriction (until December 31, 2020) of application of adjusting factors Kt and Katm, stipulated by the Law of the Donetsk People’s Republic “On the Tax System”, for the already existing landfills in accordance with paragraph 143.6 of Article 143 and paragraph 144.7 of Article 144 of the said Law.
The need to limit the use of adjusting factors for already existing landfills of the Donetsk People’s Republic is caused by the location of landfills within settlements or at a distance of less than 3 km from their borders.
Let me remind you that there are 23 landfills in the Republic. All of them, in fact, are state-owned, but there are certain peculiarities concerning the lease of land.
The purpose of adopting a law restricting the adjusting factors Kt and Katm is to prevent a 15-fold increase in the base tax rate for waste disposal for landfills for cities and districts of the Donetsk People’s Republic and the absence of the possibility for landfills to increase tariffs for the provision of services. As is known, tariffs for the population remain the same.
It should be added that representatives of the ministries, the State Committee on Environmental Policy and Natural Resources, as well as enterprises engaged in the removal of solid waste took part in the meetings of the relevant committees and working groups on this issue. An elaborated study of each problem and the concurrence of solutions by all parties involved in the end became determinant in the creation of the bill.
Marina Zheinova, the Chairman of the Committee on Budget, Finance and Economic Policy