Ukraine’s Government wants to raise taxes for private gas producers

A new draft law might fully eliminate the private oil and gas production in the Ukraine. This is due to the draft law presupposing a significant tax rise for private companies producing oil and gas.

The Government draft law “On introduction of changes into the Tax Code of the Ukraine and some other legislative acts of the Ukraine” was registered at the Supreme Rada on July 21st. The document presupposes a tax rise for the oil and gas companies. In particular, the Cabinet of Ministers suggests raising the payment for the subsoil use at the oil and gas production. Now the producers of gas that lies at the depth of up to 5 km pay the tax of 28% of the average price of the imported gas, those who operate at deeper layers – 15%. The draft law presupposes setting a 70% tax rate. The coming gas deficit pushes the Government to unusual measures. However, they all turn out to be regular measures that can only worsen the resource lack.