In an interview with the Decentralisation portal, Oleksii Riabykin, Deputy Minister for Development of Communities and Territories of Ukraine, emphasised that capable communities could indeed administer local taxes and fees independently.

‘We also support this approach,’ he said. ‘However, before delegating tax administration, communities should take an inventory of their land plots and real estate properties. This enables the tax base to be expanded and revenues to local budgets to be increased.’

According to Oleksii Riabykin, not all communities have a complete database of real estate properties, and not all of them receive 100 per cent of the real estate tax. Some cultivated agricultural land does not generate tax revenues.

‘Administration is just one aspect of the issue. The second aspect concerns the most effective use of the existing tax base, which communities could achieve even without additional powers. We can see that communities that are willing and ready to work achieve results. This is normal and correct practice, a European approach,’ explained Deputy Minister.

Oleksii Riabykin also emphasised the financial aspect of this issue, stating that, according to rough estimates, the shortfall in local taxes from these areas amounts to around UAH 30 billion.

‘These funds could be used to improve municipal infrastructure and services for people in communities. I therefore urge all communities to seize control of this issue, take an inventory of their property, and make the most effective use of the resources that already belong to them by law,’ he summarised.

Read the full interview with Oleksii Riabykin HERE.