In Kharkiv, preferential rental rates have been established for the affected land plots
To alleviate the tax burden on business entities in the City of Kharkiv during the war, a resolution regarding land fees was adopted at an extraordinary session of the City Council on February 28.
Elected members supported the implementation of temporary preferential rates for the most affected land plots, particularly those housing industrial, administrative, office, warehouse buildings, and hotels. Additionally, reduced rates were applied to land plots provided for construction and reconstruction projects. Depending on the type of land use, rates were reduced by 30-50%.
Furthermore, the application of exemptions for reducing land tax and rental fees for land plots with damaged real estate was extended by 30, 60, and 99%, depending on the category of damage. According to the resolution, these exemptions will be valid until December 31 of the year in which the state of war is terminated or canceled (previously, the period of applying exemptions was determined from January 1 to December 31, 2023).
A resolution was also passed exempting individuals from land tax and rental fees for land plots occupied by residential buildings (private houses) from January 1, 2023, until December 31 of the year in which the state of war is terminated or canceled. This privilege benefits 24 thousand residents of Kharkiv.
According to Mayor of Kharkiv Ihor Terekhov, the City administration aims to stimulate businesses and encourage Kharkiv residents to stay in the City.
"We need incentives for people to stay in Kharkiv, for industries to operate, and for entrepreneurs to return. If further reductions in tax rates are necessary for certain activities, we will do so. It is crucial for us that businesses have the opportunity to operate," - emphasized Ihor Terekhov.