Legal entities will only be able to lease land
State Agency of Land Resources of Ukraine (Derzhzemahentstvo) proposes to ban the sale of agricultural land to legal entities and allow entrepreneurs only to rent the land. This is stated in the draft law «On the use of agricultural land».
According to the document, only natural persons, the state, and local communities will be able to buy land. In addition, the interesting point in the draft instrument is the point stipulating that the transactions of purchase and sale of land should only be in the in a non-cash form.
In addition, the agency wishes to raise the bottom limit of the lease payments to 3% of the regulatory monetary value, and increase tenfold the land tax rate for arable land - up to 1% per hectare (from a regulatory value of land).
As regards agricultural lands used not as intended, the tax rate will be applied with step-up ratio of 1.5, which will increase annually by 20%.
The bill also proposes to dedicate 50% of land tax proceeds to the special fund within the state budget for inventory, land valuation and acquisition by state of privately owned lands.
Derzhzemahentstvo proposes to impose additional charge of 1% upon land owners, users and tenants for infrastructure development in rural areas.
