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FEBRUARY 6,     the AUC sent its appeal to Prime Minister of Ukraine M.Azarov with the proposals how to improve the administration of land fees.

The current legislation leaves a gap where those land users who have not entered into land lease agreements may avoid paying land lease fees. This situation may lead to considerable losses for local government budgets.

The AUC has come up with the suggestions to revisit the Methodology of Normative Pecuniary Land Valuation approved by the Cabinet of Ministers and change its provisions. In particular, the Methodology should introduce an additional rate to increase the payment for the land fee in cases when land users have not concluded land lease agreements. This rate will not be applied to those land users who have entered into such agreements.

In the opinion of AUC experts, such initiatives will provide incentives for land users to conclude land lease agreements, whereas the collections from the corresponding fees will go to local budgets.