The Ukrainian Railways joint-stock company (JSC Ukrzaliznytsia) will have to pay UAH 4.2 billion in land tax in 2019, Ukrzaliznytsia’s Board Chairman Yevhen Kravtsov has announced. This is 3.5 times more than the amount it paid in 2018, the CFTS portal reports.
According to Kravtsov, the company expects to generate revenues of UAH 5.7 billion by raising tariffs by 14.2%, but its land tax rose to UAH 4.2 billion. Part of the difference between these figures will be used to cover the company’s expenditures related to price increases in the first quarter of 2019.
"Ukrzaliznytsia paid UAH 20.8 billion in taxes in 2018, including UAH 1.2 billion in land tax. Our land tax increased by as much as 3.5 times in 2019. We have 22,000 kilometers of railway infrastructure, which is located on land that we cannot use in any way. That notwithstanding, we must pay for the maintenance of this land. This situation must be changed. We pay land tax on a general basis while railways in other countries are exempted from land tax," said Kravtsov.
As the CFTS portal reported earlier, Ukrzaliznytsia and the System Management Company (SCM) are among the five largest taxpayers in Ukraine. The two companies paid a total of more than UAH 101 billion in taxes.