Revenue in the budget of Kiev from the payment for land use in 2015 increased by 36.8% compared to the 2014 year and amounted to 2.6 billion USD.
According to Director of Department of land resources of Kyiv city state administration (KCSA) Alexei Polishchuk at a press conference in Kiev, in the amount of payments for use of land and includes rental income and income from payment of land tax.
“Last year, all the lease agreements, the average rate was 4-6% (normative monetary evaluation, the NIRS – ed.). The Department took the initiative to lower rents. Under the new ruling, which is valid for this year, the main range of rental rates will range from 3% to 5% of NGOs,” – said A. Polishchuk.
He also added that the rate of NIRS land for 2016 was increased by 43% compared to the year 2015. This is because when calculating the NIRS takes into account the rate of inflation in the country.
At the same time, A. Polishchuk reported that the Department of land resources has prepared a draft decision, which will help reduce the fee for the use of land plots in the capital.
“The Department has prepared a draft decision, which can reduce the burden on businesses by approximately 5-10%. We will lower the local coefficients in Kiev, which will give the opportunity to reduce the payments,” he said.
Speaking about the users of land who are evading payment of rents or taxes on land use, the Director of the Department of land resources clarified that if at such sites, nothing is built, the lease thereon is terminated unilaterally, and the parcels put up for auction.
According to A. Polishchuk, the Department today has trained more than hundreds of such draft decisions, but conducting auctions for such plots actually blocked the legislation on the need to develop a detailed project plan of the territory (DPT).
“The whole Ukraine is because of the law that needs to be cancelled or postponed because to develop the PTA is very expensive. I say this to everyone, and Kyiv deputies understand it, too,” said the Director of the Department.
A. Polishchuk said that the majority of investors, ready to rent or buy land in Kiev, interested in areas of 5-10 hectares, while for the development of the PTA to investors are allocated an area of approximately 100 hectares, with the consequence that such work is not always performed efficiently.
“Investor normally takes into account only the interests of the territory, and the rest is drawn haphazardly”, he said.