In January-September of this year, businessman Alexander Yaroslavsky’s DCH Group increased its payments to the budgets of all levels by 14.5%, or UAH 210 million, compared to the same period last year, to more than UAH 1.65 billion.
According to the PR department of DCH, the total amount of taxes paid by the group’s companies since the beginning of Russia’s full-scale invasion has reached almost UAH 5.5 billion.
It is specified that the main increase in tax payments compared to 9 months of 2023 was provided by JSC Bank Credit Dnipro – by UAH 95 million, Kharkiv Tractor Plant (HTZ) – by UAH 32 million, and ORANTA Insurance Company – by UAH 70 million.
It is also reported that in particular, in January-September 2024, DMZ reduced the production of rolled metal products by 56.9% compared to the same period last year, while the production of metallurgical coke decreased by 0.4%.
In the first 9 months of 2024, Sukha Balka Mine commissioned 8 new blocks with total reserves of 906 thousand tons of ore.
Since the beginning of Russia’s full-scale invasion of Ukraine, KHARTSYZSK PIPE has been in the war zone and the plant’s territory has been under constant shelling. Nevertheless, KHARTSYZSK PIPE continues to maintain production, electricity, gas and water supply to the plant and the city area, and continues to produce machinery for agriculture and the country’s critical infrastructure.
In June of this year, Bank Credit Dnipro, together with the Independent Association of Banks of Ukraine and 18 major commercial banks, signed a memorandum of bank lending for energy infrastructure rehabilitation projects, which is dictated by the country’s strategic need to ensure energy independence.
A significant challenge for manufacturing companies is the outflow of personnel, in particular due to the mobilization of personnel. Since the beginning of the war, 465 employees of Sukhoi Balka and 268 employees of DMZ have joined the Armed Forces of Ukraine. The companies’ operations are also affected by periodic power outages, when they have to reduce or stop production completely.
Today, DCH Group employs over 7.6 thousand people. 912 employees of the group serve in the Ukrainian Armed Forces, 55 of those who joined the ranks of the Armed Forces were killed.
DCH Investment Management is a financial and industrial group of companies that manages investments in ore mining and metallurgy, machine building, real estate, insurance, banking and hospitality.
The new French government wants to reduce the budget gap by 60 billion euros in 2025 and is preparing a temporary tax increase.
The new French government has announced a decision to raise taxes starting in 2025. The Minister of Finance Antoine Armand said this on RTL radio.
The draft budget for 2025 with specific proposals is to be released on October 10.
The goal of the French authorities is to reduce the budget deficit by 60 billion euros. This is partly planned to be done by cutting spending (by €40 billion) and partly by increasing budget revenues.
“As soon as we manage to cut spending significantly, we will need exceptional and temporary help from those with very high incomes,” Arman said. He assured that people with low and middle incomes will be exempt from the additional fiscal burden: “The income tax rates for those who go to work every day will not change.”
His government colleague, Laurent Saint-Martin, Minister of Budget and Financial Accounts, said on France 2 on Thursday that only 0.3% of the population will feel the tax increase – the richest households in France, those without children and earning an annual income of 500,000 euros.
The tax increase will also affect the largest companies.
Earlier this week, French Prime Minister Michel Barnier warned that the current financial situation in the country is a sword of Damocles hanging over every French citizen. “We need to act now to ensure a stable financial future for our country. Our debts exceed €3.2 trillion, and this is a situation we cannot ignore,” he said.
In September 2024, for the first time since the global financial crisis, the yield on French government bonds exceeded that of Spanish securities. The reason is that the budget deficit in France is too high.
Last year, it was 5.5% against the planned 4.9%, and this year it may reach 6%, which is much higher than the European Union’s limit of 3%. At best, France will be able to return to the target no earlier than the end of this decade.
Trends in the global and Ukrainian economies can be tracked via the Experts Club information and analytical channel – https://www.youtube.com/@ExpertsClub
A revised draft law on tax increases during wartime (No. 11416-d) was registered in the Verkhovna Rada on Friday, the parliament’s website reports.
The text of the draft law on amendments to the Tax Code of Ukraine regarding the peculiarities of taxation during martial law is not yet available on the website.
The draft law is authored by MPs Danylo Hetmantsev and Andriy Motovylovets (Servant of the People faction) and Oleksandr Lukashev (Restoration of Ukraine parliamentary group).
As reported, the Parliamentary Committee on Finance, Taxation and Customs Policy recommended that the Verkhovna Rada adopt as a basis the revised draft law on raising tax rates.
According to Committee Chairman Hetmantsev, the draft law provides for an increase in the military tax rate from 1.5% to 5%, setting the military tax at 1% of income for individual entrepreneurs (IEs) for single tax payers of group III and at 10% of the minimum wage for single tax payers of groups I, II and IV.
LAW, PARLIAMENT, TAX
Metinvest Group’s Central, Ingulets and Northern Mining and Processing Plants (MPPs), which were transformed into United Mining and Processing Plant (UMPP), paid UAH 2.8 billion in taxes in January-June 2024.
According to the company’s press release on Thursday, in the same period of 2023, YuGOK, Central GOK and InGOK transferred UAH 1.4 billion to the state and municipal budgets.
“Despite the ongoing war, economic difficulties and challenges, Metinvest’s Kryvyi Rih enterprises remain one of the largest taxpayers and a strong pillar of the region and Ukraine,” the company said.
It is specified that in the first half of 2024, the main sources of budget revenues from Northern GOK, Central GOK and InGOK were the subsoil use tax – UAH 1.7 billion. The treasury also received a single social contribution of almost UAH 357 million and personal income tax of UAH 318 million. The list of the largest contributions includes land fees and environmental tax.
According to the press release, Kryvyi Rih enterprises remain the largest employer in the region. In addition, the GOKs continue to support Kryvyi Rih and the community by implementing joint humanitarian, educational and infrastructure projects.
As a reminder, in the first half of 2024, Metinvest Group increased its tax payments to the Ukrainian budget by one and a half times, to UAH 10 billion.
As reported, Metinvest is implementing a new model for the operation of Kryvyi Rih mining enterprises, uniting mining and processing plants in Kryvyi Rih under one management.
“Given the current challenges, with no objective way to bring the workload of the GOKs to the optimal level, we are looking for the effect of combining their capabilities and business processes. To this end, the company sees its GOKs not as separate facilities with separate teams, but as one large production site and one large team, and tries to use the advantages of each GOK in a single technological chain. The creation of a single administrative and management center, so to speak, a consolidated GOK, will significantly simplify, speed up and increase the efficiency of these processes, as well as contribute to the creation of new synergies between the enterprises,” explained Yuriy Ryzhenkov, CEO of Metinvest, earlier.
In 2023, Metinvest’s Kryvyi Rih enterprises paid a total of UAH 4.6 billion in taxes and fees to the budgets of all levels.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group, including its associates and joint ventures, increased its payments of taxes and fees to the budgets of all levels in Ukraine by 56% year-on-year to UAH 9.9 billion in January-June this year.
According to the company’s press release on Monday, the largest payment is the subsoil use fee, which more than tripled to UAH 2.9 billion in the first half of 2023. The second largest payment was the unified social tax of UAH 1.8 billion, up 19%. The top three largest payments were made in the form of UAH 1.7 billion in personal income tax, up 16% year-on-year.
At the same time, Metinvest’s Ukrainian enterprises paid UAH 1.4 billion in corporate income tax in January-June 2024, up 26% compared to January-June 2023. Land payments increased by 7% to UAH 631 million and environmental tax by 22% to UAH 368 million.
Yuriy Ryzhenkov, CEO of Metinvest, stated that the group has overcome many challenges during the war, but many challenges are still ahead.
“Our efforts to rebuild our business to operate in the new environment and our ability to turn problems into opportunities have paid off – tax payments are growing. This is our contribution to supporting the economy of Ukraine and the regions near the frontline where the company’s enterprises operate. We allocate significant resources to help the army and civilians, continue to make plans for a peaceful future and are ready to participate in the post-war revival of the country,” the top manager emphasized.
As reported earlier, Metinvest almost doubled its tax payments to the Ukrainian budget in the first quarter of 2024 to UAH 4.2 billion. In 2023, the company paid UAH 14.6 billion to the Ukrainian budget.
“Metinvest is a vertically integrated group of steel and mining companies. The Group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
State-owned Oschadbank (Kyiv) has so far paid UAH 4.2 billion in income tax and UAH 0.7 billion in dividends to the budget based on the results of its operations in 2023 and plans to make another final payment of UAH 1.1 billion, the Oschadbank press service said at the request of Interfax-Ukraine on Wednesday.
“The budget will receive a total of UAH 6 billion from income tax and dividends, UAH 0.5 billion is taken into account in the calculations for previous periods,” the press service of the financial institution noted.
According to the finalized financial results, the bank earned UAH 6 billion in net profit last year, which, according to the bank, is the second highest figure in the market after PrivatBank.
As of March 1, 2024, Oschad ranked second in terms of total assets (UAH 376.4 billion) among 63 banks in the country.
