DiXi Group expert Olha Polunina presents prospects of reforming environmental tax

25 October 2019

Speaking at the round table “Gas production and sustainable development of communities: challenges and prospects” held on 22 October in Poltava, DiXi Group expert Olha Polunina addressed the problems of distributing environmental tax and the prospects of reforming it.

The event was held by New Energy CSO and the Energy Transparency Association as part of the “EITI in Ukraine for efficient local governance” initiative.

“The approved lists of environmental protection measures must be revised and public control over the use of environmental tax revenues made stricter,” Olha Polunina said. “We need to study the best practices of environmental tax management, including those concerning its structure. The Tax and Budget Codes need to be amended, and environmental tax revenues must be accumulated in a special fund or funds solely for a specific-purpose use. What we also need is to amend the government’s acts and relevant resolutions of local authorities, and promote the implementation of EITI in Ukraine, in particular, the new 2019 standard which requires disclosure of payments to the state for environmental protection purposes.”

The round table reviewed the new 2019 EITI standard, which was presented in detail by Oliana Valigura, a representative of the EITI International Secretariat.

The attendees discussed, and saw for themselves, how extractive enterprises active in the Poltava Oblast (Ukrgazvydobuvannia JSC, DTEK Naftogaz) are trying to apply environmental principles in their operations, in particular, when visiting Machukhy Gas Preparation Plant and a pilot drilling waste processing plant at Yablunivske gas field.

The event was attended by representatives of the EITI National Secretariat, International Renaissance Foundation and GIZ, members of the Verkhovna Rada of Ukraine and Poltava Oblast Council, and representatives of CSOs and extractive enterprises operating in the region.

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