In the City Council of Lviv they spoke that they consider the procedure of re-registration of the Regional Code, located in Lviv, illegal.
Representatives of the Town Hall see changes in the registration of enterprises and public-service establishments from the city to areas threatening to unbalance local budgets. This procedure is detrimental to the city budget and its territorial community. The Lviv City Council’s Economic Development Department has estimated that losses could exceed 100 million hryvnias a year.
According to estimates of the department, the city has already lost more than 40 million hryvnias from institutions and enterprises that were re-registered in 2019. In 2020, another 55 million hryvnias could be lost if the Lviv Regional Council continues to re-register taxpayers from Lviv. Thus, the city budget will have losses of 100 million UAH. This was reported by the head of the department, I. Kulinich.
The official assured that in 2019 the region budget received more than 1 billion hryvnias from personal income tax (personal income tax) from salaries in Lviv. At the same time, the city budget received 4.1 billion hryvnia PIT.
Oh. Hanushchin, chairman of the Lviv Regional Council, claims that the re-registration policy will continue and be extended to villages. Therefore, it is planned to re-register museums, medical institutions and other organizations that report to the oblast council. In doing so, they agreed to pay 50% of the development taxes to the organizations that paid them. However, the legality of such a procedure is not specified.
Lviv City Hall has sent letters to Finance Minister O. Markara asking to intervene and take appropriate measures to ensure that Lviv taxes are returned to the city budget again. The City Council also filed a complaint with the head of the State Tax Service S. Verlanov about unlawful actions of the regional council.