In Ukraine, in January-September 2024, due to the turnover and use of agricultural land, community budgets received more than UAH 23 billion in taxes, which is 15% more than in the same period in 2023, according to a study by the Kyiv School of Economics (KSE) commissioned by the USAID program.
According to the study, in July 2024, agricultural land contributed UAH 3.5 billion to community budgets, which is 13% more than last year. This made it possible to partially compensate for the decline in other tax revenues caused by the redirection of personal income tax paid by the military to the state budget – approximately 16% of the UAH 2.5 billion shortfall in July.
In addition, the share of revenues related to agricultural land in the total tax revenues of communities this year increased from 11% to 14%. In July this year, communities had an average of UAH 90 of budget revenues per hectare. Dnipropetrovs’k region remains the leader in terms of budget revenues from the turnover and use of agricultural land – UAH 261 per hectare in July.
“The key factor in the growth of community revenues from the turnover and use of agricultural land was the increase in payments for the lease of communal agricultural land (+11%) and the revival of revenues from land tax (+12%). Communities’ finances were also positively affected by the increase in revenues from the minimum tax liability (MTL). In July 2024, the payment of the minimum tax obligation amounted to UAH 116 million, which is the largest monthly tax revenue since the beginning of the year,” the KSE said.
