The City Hall of Mykolaiv reported that income from renting land decreased by 60% last year

Revenues in the budget of the city of Mykolaiv from land lease last year decreased by 61.5%, compared to the corresponding period of 2021.

This is discussed in the «Program of Economic and Social Development of Mykolaiv for 2024-2026», NikVesti writes.

According to local authorities, the reason for such a sharp decrease in income is the deterioration of the financial condition of land users caused by the large-scale armed aggression of the Russian Federation against Ukraine.

«According to changes to the taxation system introduced to provide additional business incentives during martial law, land tax is not assessed or paid in areas where hostilities are ongoing,» the report said.

Land rates remained unchanged in 2021 and 2022 and are currently not expected to be revised in 2023. During the past year, Mykolaiv city authorities refrained from selling land plots and privatizing communal property, but continued to lease these objects.

«In general, the results of 2022 showed not only a decrease in income from land lease, but also a deterioration in the dynamics of income from transactions with property and communally owned land. All this is the consequence of Russia's large-scale armed aggression against Ukraine, which affected the city's economy and finances,» the report summarized.

As of July 1, there are 489 objects of communal ownership of Mykolaiv city territorial community in lease use.

We will remind that as of May of this year, Mykolaiv enterprises that worked during the war owed their employees 18.7 million hryvnias in wages.

Read also the article: «Exemption from payment of rent and land tax during martial law».