Ukrnafta paid UAH 870 million in taxes in October

In October 2020, PJSC Ukrnafta paid taxes to the budgets of all levels of UAH 870.6 million, the press service reports. This amount includes the rent for the use of mineral resources, VAT, income tax, excise duty, and other taxes. The amount of taxes paid for 10 months of 2020 reached UAH 10.35 billion.

PJSC Ukrnafta paid UAH 425 million in rent to state and local budgets of various levels to use subsurface resources in October 2020. Of these, UAH 21.25 million went to local budgets following the mechanism for distributing rent payments for oil and gas production established in the legislation.

The largest revenues from Ukrnafta's rent were received by the budgets of Sumy (UAH 8.79 million), Ivano-Frankivsk (UAH 4.89 million), and Poltava (UAH 3.35 million) regions. Revenues from rent depend on the volume of hydrocarbon production in a particular region and prices for them. They are used by communities mainly for the implementation of local infrastructure and social projects.

The principle of distribution of rent payments for oil and gas production provides for the transfer of 95% of the rent payments to the state budget's general fund and 5% to local budgets. At the same time, 2% of the income from rent is directed to the regional budgets and 3% - to the budgets of cities of regional significance and the budgets of the united territorial communities at the place of extraction of natural resources.

Tags: gas, Naftogaz, oil, Ukrnafta, taxes, oil and gas industry

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