Authorization
Industry associations including the Association of Alternative Fuel and Energy Market Participants of Ukraine (APEU), the Ukrainian Wind Energy Association (UWEA) and the Bioenergy Association of Ukraine (UABio) appealed to the President of Ukraine Petro Poroshenko to veto a bill "On Amendments to the Tax Code of Ukraine and Some Other Legislative Acts of Ukraine (Concerning Improvement of Certain Provisions)" adopted by the Verkhovna Rada of Ukraine at the closed seating on July 31, 2014.
The amendments made by the Cabinet of Ministers of Ukraine cancel exemption from CIT for companies selling electricity from renewables. Additionally, the bill provides for the imposition of the excise tax on alternative motor fuels in the amount of EUR 139/t.
According to the associations’ experts, adoption of the draft law № 4309 from 21.07.2014 initiated by the Cabinet of Ministers of Ukraine, will extremely negatively impact the national market of alternative fuels and the renewable energy industry of Ukraine as a whole. In addition, the cancellation of this benefit will greatly retard the process of replacement of Russian natural gas which delivery to Ukraine has been suspended.
Professional associations repeatedly appealed to the Prime Minister of Ukraine, the Chairman of the Verkhovna Rada Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety, the Chairman of the Verkhovna Rada Committee on Taxation and Customs Policy to consider the opinion of the representatives of the renewable energy sector. But, unfortunately they have never received any response.
The associations call for urgent consideration of their proposals that expresses the opinion of the majority of renewable energy market players and to prevent the abolition of income tax exemptions to producers of electricity from renewable energy sources and the imposition of the excise tax on alternative motor fuels.
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