Mining & metals companies paid $1.6 billion in taxes in 2020 — GMK Center

The sector paid $1 billion to the Pension Fund of Ukraine

Mining & metals companies brought Ukraine $1.6 billion in tax revenues at both national and local levels in 2020. These data were presented in the study report Contribution of the mining & metals sector to Ukraine’s economy in 2019–2020 prepared by GMK Center analysts.

The share of companies mining coking coals, producing coke, iron and steel, mining metal ores and producing metalware in total tax revenues collected in Ukraine accounted for 3.8%.

Thus, the largest mining & metals companies reported the following tax payments in 2020:

• Metinvest ₴22.1 billion,
• ArcelorMittal Kryvyi Rih ₴6.4 billion,
• Ferrexpo ₴2.5 billion in 9M 2020,
• Interpipe ₴2.54 billion.

The recorded $1.6 billion include the following taxes: personal income tax, military tax, corporate profit tax, VAT, property tax, environmental tax. Interestingly, the largest companies of the sector waived a chance to enjoy a tax holiday offered by the government for the period of the coronavirus epidemic.

In addition, mining & metals companies paid $1 billion to the Pension Fund of Ukraine in the form of single social contributions. That means that the sector funds one thirteenth of the total pensions paid in Ukraine.

As reported earlier, the share of mining & metals companies in the structure of capital investments in the industrial sector increased from 27.1% in 2019 to 30.4% in 2020 despite the economic crisis caused by the pandemic. The mining & metals sector’s investments in 2020 amounted to $1.7 billion.

The total share of the mining & metals sector in Ukraine’s GDP is estimated at 10.6%.