The NAEIU calls on parliament to reject a number of amendments to the draft amendments to the Tax Code

The National Association of Extractive Industries of Ukraine (NAEIU) has appealed to the chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Getmantsev, and members of parliament to reject a number of harmful amendments to the draft amendments to the Tax Code.

These are amendments Nos. 70, 71, 34, and 96 to draft law No. 13157 of April 7, 2025.

“Since the start of the full-scale war, NAEIU has regularly emphasized the difficult situation in which Ukraine’s extractive industry finds itself. The proposed and aforementioned changes will exacerbate negative trends for businesses operating in wartime conditions,” the association’s appeal emphasizes.

NAEIU cites the following arguments.

Amendments No. 70 and No. 71 provide for a 2.5-fold increase in land tax for mining companies, which in wartime conditions will jeopardize production, exports, and employment.

«A 2.5-fold increase in tax rates will lead to a significant increase in the cost of production, which will be a critical factor for many enterprises that are already operating at the break-even point. This will lead to a reduction in production and export volumes, a decrease in the state’s foreign exchange earnings, forced staff reductions or the transfer of employees to part-time work, and a decrease in revenues from other taxes (personal income tax, income tax, rent payments, etc.),» the NAEIU noted in particular.

Amendments No. 34 and No. 96 allow the suspension of subsoil use permits due to insignificant tax arrears (from UAH 3,060), which creates high corruption risks and threatens the smooth operation of enterprises. In particular, the low debt threshold, which does not correspond to the scale of large enterprises’ activities, creates risks for the state that are more costly than the expected benefits due to reduced production.

The NAEIU insists that the adoption of these amendments during the war undermines the stability of an industry that is critical to the economy. The tax burden should be fair, balanced, and predictable, not destructive, the association notes, expressing hope for a responsible position from parliamentarians and support for preserving the country’s industrial potential.

The unfavorable economic situation is worsening Ukraine’s foreign trade statistics in the iron and steel sector. The decline in world prices for steel products reduced the export revenues of Ukrainian metallurgists in January-April 2025. The negative trend is evident in most commodity items.