Parliament passes ‘anti-Akhmetov’ tax law that raises iron ore rents, triples carbon tax

Parliament voted the bill through in its second reading. The bill had been labelled as “anti-Akhmetov,” as two of its key provisions will hurt the steelmaking and energy business interests of Rinat Akhmetov, Ukraine’s richest man.

The provisions in question are a new calculation system for iron ore mining rents based on global market prices, and a tripling of the industrial carbon dioxide emission tax from $0.37 to $1.11 per ton. The bill contains several other tax changes, such as the implementation of an 18% levy on agricultural produce sales above $2,800 a year.

Finance Minister Serhiy Marchenko told parliament in September that the new law could raise between $920 million and $1.3 billion of extra tax revenue annually.

The law’s passing comes at a time of great tension between Akhmetov and the President’s Office, with President Volodymyr Zelensky alleging in his Nov. 26 press conference that Ukraine’s intelligence services had obtained evidence that Akhmetov was being pulled, possibly without his knowledge, into a Russian-backed coup attempt due to take place on Dec. 1. Akhmetov denied the accusations.