The Verkhovna Rada of Ukraine endorsed the decrease of rental rate for using subsoil while extracting mineral resources from 70% to 14-29%. The relevant draft law №2835 on Introduction of Amendments to the Tax Code of Ukraine regarding Cheapening Gas for Population in the first reading was endorsed by 228 parliamentarians while 226 are minimum required, RBC-Ukraine (РБК-Украина) reports.

According to the Law it is proposed to set the following rental rates for using subsoil for gas extraction. “The rental rates for using subsoil for extraction of mineral resources are set in percent from the cost of market products of the mining company – extracted mineral resources (mineral raw materials) in the following sizes: natural gas, extracted while fulfilling agreements on joint venture with deposit up to 5000 meters – 29 00% from the cost of market products of the mining company… the natural gas, extracted while fulfilling agreements on joint venture with deposits of more than 5000 meters – 14.00%”, as it is emphasized in the document.

In addition, it is proposed to decrease the rate for extraction of mineral resources with commercial purpose from deposits, which fully or partially lie at the depth of 5 ths meters in the amount of 29%, and from deposits, which fully lie at the depth of more than 5 ths. meters – 14%. Currently, for the extraction of the 1st kind the rate stands at 55%, for 2nd – 28%.

In the meantime, it is proposed to leave the rate at the level of 70% for joint venture companies.

After voting the speaker of the Rada Vladimir Groysman closed the morning plenary session of the parliament.

It should be noted that the draft law № 2385 was approved in principle from second time, during first voting the deputy’s draft law won 217 votes. In addition, the government draft law in the first voting was endorsed by 166 parliamentarians.