A proposal has been made in Ukraine to introduce a draft law that would increase local budget revenues by increasing land lease payments. This draft law is recommended for introduction to the Tax Code of Ukraine by the decision of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, according to government spokesman Taras Melnychuk.

The authors of the draft law propose to establish special rules for taxation of land plots leased to business companies that were created through the transformation of state-owned enterprises with re-registration of permanent use rights.

According to this draft law, the lease payment for agricultural land plots will be 12% of their normative monetary value. However, there are several key conditions:

The land plots must be assessed at the normative monetary value.
They must be leased to joint-stock companies (JSCs) or limited liability companies (LLCs) that were formed through the transformation of state-owned enterprises and the state owns 100% of the shares in their authorized capital.
However, if the normative monetary value of such land plots has not been assessed, the rent is proposed to be set at 12% of the normative monetary value of a unit area of arable land by region.

In May 2023, a law was passed that exempts farmers and landowners from paying taxes on mined, contaminated, occupied, and military-affected land. This initiative applies to land plots located in the territories where hostilities are ongoing, on temporarily occupied land, as well as on land plots that are undergoing conservation or contaminated with explosive devices.

Owners and tenants of such plots are exempt from minimum tax liability, the Group 4 single tax and land tax.