FIXING THE MINIMUM PRICE FOR GRANITE AS A RAW MATERIAL FOR THE QUARRY STONE

The Committee of the Parliament of Ukraine on Finance, Taxation and Customs Policy at its meeting on 04 October 2024 considered the Draft Law of Ukraine ‘On Amendments to the Tax Code of Ukraine on Peculiarities of Taxation during the Period of Martial Law’ (Reg. No. 11416-d dated 30 August 2024), second reading.

The meeting resulted in the following decisions, in particular:

1. The title of the draft law is set out in the following edition – ‘On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring the Balance of Budget Revenues during the Period of Martial Law’.
2. Clause 252.8 of Article 252 of the Tax Code of Ukraine shall be supplemented with the following paragraphs:

‘The actual selling price of extracted minerals (mineral raw materials) of commercial products of a mining enterprise made of rocks classified under code 2517 of the Ukrainian Classification of Goods for Foreign Economic Activity (УКТ ЗЕД) shall be determined at the higher of

at the actual selling price of the respective type of commercial products of the mining enterprise – extracted minerals (mineral raw materials) under supply contracts;

at the price of a unit of the mining enterprise’s commodity output – extracted minerals (mineral raw materials), determined according to the methodology approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1374 dated 15 October 2004, for granite as a raw material for rubble stone, but not less than USD 6.50 per 1 tonne, converted into UAH per 1 tonne at the exchange rate of the National Bank of Ukraine as of the 1st day of the month following the tax (reporting) period.

The actual selling price of extracted minerals (mineral raw materials) of the mining enterprise’s commercial products made of rocks classified under УКТ ЗЕД code 2505 is determined by the higher of

at the actual selling price of the respective type of commercial products of the mining enterprise – extracted minerals (mineral raw materials) under supply contracts;

at the price of a unit of commercial output of a mining enterprise – extracted minerals (mineral raw materials), determined according to the methodology approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1374 dated 15 October 2004, for sand as refractory raw materials, but not less than USD 5.00 per 1 tonne, converted into UAH per 1 tonne at the exchange rate of the National Bank of Ukraine as of the 1st day of the month following the tax (reporting) period.

The central executive body implementing the state policy of economic development shall, by the 10th day of the month following the tax (reporting) period, publish on its official website in a special section the price of a unit of commodity production of a mining enterprise – extracted minerals (mineral raw materials) classified under codes 2505, 2517 of the Ukrainian Classification of Goods for Foreign Economic Activity, determined according to the methodology approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1374 of 15 October 2004, in the national currency of Ukraine and provide information on such price to the central body.

3. Sub-clause 2 of clause 13 of section I of the draft law shall be supplemented with a new clause as follows:

‘Sub-clause 69.5 of clause 69 of subsection 10 shall be supplemented with the second paragraph as follows:

‘Volume of commercial products of a mining enterprise – extracted minerals (mineral raw materials) of commercial products of a mining enterprise from rocks classified under code 2517 of the Ukrainian Classification of Goods for Foreign Economic Activity, which are transferred free of charge to the Armed Forces of Ukraine and volunteer formations of territorial communities, the National Guard of Ukraine, the Security Service of Ukraine, the Foreign Intelligence Service of Ukraine, the State Border Guard Service of Ukraine, the Ministry of Internal Affairs of Ukraine, the State Protection Department of Ukraine, the State Service for Special Communications, other military formations, their formations, military units, subdivisions, institutions or organisations established in accordance with the laws of Ukraine for the purposes of ensuring the defense of the state, are not subject to taxation of rent for the use of subsoil for the extraction of mineral resources.’

All adopted proposals to the above-mentioned draft law can be found on the website of the Verkhovna Rada of Ukraine in the Comparative Table (second reading), which contains 647 pages and was published on 8 October 2024.

It is also interesting to read the Opinion of the Main Scientific and Expert Department and the Remarks of the Main Legal Department of the Verkhovna Rada of Ukraine.

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