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Benefits are necessary to make business in village work

A lot is said about the fact that it is necessary to create decent living conditions and infrastructure in villages. Entrepreneurship should develop in order to make it happen. Ukrainian legislation often limits villagers in their willingness to live and work in a civilized manner, paying taxes.

Almost every village has a market. But mostly it does not have limits, functioning as a spontaneous trade place without any conditions. Entrepreneurs who want to provide services for those who trade in a civilized manner are faced with a huge tax burden. That stops the wish to make business in villages. Such problem emerged in the village council of Voznesensk region of Mykolaiv oblast.

The village Head and the entrepreneur came to Voznesensk Community Law Center which is functioning under the Agroinvest project supported by USAID. The businessman has to pay around 100 000 UAH per year for land where the market is situated. But the market is working only 2 times per week. The sum is too big, people do not earn that much in the village. They wanted to find out if it is possible to save the market without breaking the law. In fact, the problem is very common. That is why the consultation of Center’s lawyer will help lots of people.

Here is the situation. Land area is rented in order to use it for market. The rent has increased and is around 100 000 UAH per year. The market works twice a week. The village council wants to help the business and make changes to the rent agreement by changing the terms. Can the village council change the agreement by adding the fact that the market works only 2 times per week? According to the Community Law Center team, this idea is illegal base on Ukrainian legislation (Law of Ukraine “On land rent”)

The Community Law Center lawyer proposed to give benefits to the businessman according to the Tax Code of Ukraine. It can be done by the decision of the session of village council and sent to the tax administration so that they can re-count the rent with the benefits included.

That is how villagers can solve the problem of huge rent. Thus, business will develop, and people will get services of great quality.

Voznesenks Community Law Centeris functioning under the project “Land Rights: Consulting, Advocacy and Bright Education» supported by USAID AgroInvest.
Address: 3 Pushkinska St., of. 35, Voznesensk, Mykolaiv region, 56500
Tel.: +38 (05134) 3-22-50, + 38 093-515-76-23 (manager), +38 099-7258849 (lawyer)

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