The Association of Ukrainian Cities plans to contact the Prime Minister of Ukraine Denys Shmygal and the management of “Naftogaz Ukraine” Group of Companies in order to develop a formula for writing off debts for the difference in gas tariffs. This became known during the Association of the citites of Ukraine meeting, which was attended by mayors of cities and the Secretary General of the Congress of Local and Regional Authorities of the Council of Europe Andreas Kiefer, as well as the Special Envoy of the Government of the Federal Republic of Germany on reforms in the areas of governance and decentralization in Ukraine, Georg Milbradt.
Mayor Vadym Boichenko noted that in its current form, the bill 3508-d does not have a clear formula for calculating debt write-off for the difference in tariffs.
‘We were not the ones who formed the debt for the difference in gas tariffs. And not masses should cover it from the development budget. Although the bill was passed, it did not have a clear formula. It is not clear whether the entire amount will be debited or part of it. In the current environment of rising gas prices, such an additional financial burden could simply stop urban development. The debt for the difference in tariffs should be written off,’ the Mayor of Mariupol said.
In connection with this situation, representatives of the Association of Ukrainian Cities will send an appeal to the Prime Minister of Ukraine and the head of ‘Naftogaz’ in order to develop a mechanism for writing off the debt in full.
In addition, two draft laws were discussed, which, if adopted, could significantly strengthen communities on the way of their development at the meeting of the board of Association of the cities of Ukraine. We are talking about bill No. 5066 or alternative No. 5066-1. These bills indicate an increase in the share of personal income tax, which remains in cities by + 5%. For Mariupol, this figure will amount to more than UAH 200 million. The second bill is No. 3175, which envisages changing the reverse subsidy.
‘A fair approach is needed that does not kill the motivation for economically active communities. Last year, the reverse subsidy for Mariupol amounted to UAH 240 million, and this year - more than UAH 400 million. This is the money that the city gives in favor of other communities that do not have such a pace of development. The adoption of bills will reduce the burden of subsidies. Economically active cities will have more opportunities for development,’ Vadym Boichenko stressed.
Photo from the resource: https://auc.org.ua/