Rada regulates distribution of 12% of normative monetary value of public land for its lease through auctions
The Verkhovna Rada has made changes to the Budget Code and regulated the distribution of 12% of the normative monetary valuation of land, which will be the starting price at auctions for the transfer of land for lease, Head of the State Property Fund (SPF) of Ukraine Vitaliy Koval said.
"Now 90% of such revenues will go to the state budget, and 10% to local budgets," he said on Telegram channel.
According to him, this will significantly increase national budget revenues thanks to a transparent land rental market through the Land Bank, maintain local budget revenues at the current level, and potentially increase local budget revenues by bringing rental relations out of the shadows.
"In conditions of martial law, such changes will strengthen our internal reserves. These are additional funds to the national budget, from which the Defense Forces of Ukraine are financed," Koval said.
The SPF head of also said the department's team is working to accelerate the launch of the Land Bank. In the first pool, it is planned to lease over 100,000 hectares of agricultural land through online auctions, he said.
He explained that the Land Bank is access through auctions of farmers to the market for public agricultural land. Thanks to competition, the rental price will be market-based and will depend on the location, soil quality, and infrastructure location. The starting price will be 12% of the standard monetary value of the land.