13:42 27.11.2019

MPs from Servant of the People propose foreseeing seven-year restriction for resale of land

3 min read

KYIV. Nov 27 (Interfax-Ukraine) – A group of MPs from the Servant of the People Party has presented some amendments to bill No. 2178-10, which annuls the moratorium on the sale of land, in particular, regarding the seven-year restriction to resale land.

"If we limit the resale of land for seven years – this is the minimum lease term – I believe that only those who are going to work on it will buy land. And thus, we will not create a rentier institute, which will then dictate terms to our farmers," the author of this amendment to the bill on the land market, MP from the Servant of the People Party Mykola Tyschenko said at a press conference at Interfax-Ukraine on Wednesday.

At the same time, during the conference devoted to amendments to bill No. 2178-10 and how to ensure rural welfare and preventive measures for speculation in the land market, the MP also proposed providing for the declaration of the origin of funds for the purchase of land.

"I propose introducing a mandatory verification of the origin of these funds," he said.

MP from the Servant of the People Party Pavlo Khalimon said that this is about the transfer of payments for the purchase of land in noncash form.

However, according to Khalimon, the amount of land concentration in the bill should not be changed, since too low requirements for concentration will entail shadow schemes.

At the same time, the MP said that he considers it more expedient instead of resale restrictions to establish tax rates that would make resale economically unviable.

"In Ukraine, personal income tax is 18%, military tax is 1.5%. If a person wants to sell the land during [the first] three years, then I consider it fair to pay personal income tax and military duty. In this way, we avoid manipulation and speculation," he said.

If the new owner wants to resell the land within three or five years after its purchase, the general tax rate should be set at 9%, after five years – 5%, Khalimon said.

The amendment, which limits the economic viability for the resale of land, was also proposed by MP Vadym Strunevych (the Servant of the People). In addition, he proposes to limit the initial lease of land after its acquisition.

"The land parcel should be acquired for further processing by farmers," he said.

In turn, MP from the Servant of the People parliamentary faction Anatoliy Ostapenko pointed out the need for legislative restrictions on changing the status of farmland, which he indicated in his amendments to the bill.

"Farmland should be used exclusively for its intended purpose... We must settle in the law the issue of changing the purpose of land. Land is for farmers, not for developers," Ostapenko said at the press conference.

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