Kyivstar calls to set clear dates for abolition of increasing RF spectrum coefficients
The bill on the abolition of incentivizing surcharges and reduction coefficients to certain rates of rent payments for the use of radio frequency (RF) spectrum, in the version adopted by the Verkhovna Rada on Tuesday, does not specify a clear date for the abolition of the surcharges.
Ukraine's largest mobile operator, Kyivstar, has pointed this out.
The company expressed hope that dates would be established soon.
"Unfortunately, the version of the bill that was voted on at the second reading retains the surcharges until the end of the legal regime of martial law... We hope to find a solution for establishing a clear date for the abolition of the surcharges through further constructive dialogue with the state," Kyivstar's GR advisor Artem Freiuk told Interfax-Ukraine.
According to him, retaining the current wording complicates the process of calculating tax obligations, increases the tax burden on the industry, and does not promote equal taxation rules for players during martial law.
When preparing the bill for the first reading, the relevant committee stated the need to revise it, providing for an indexation of spectrum rent rates by 12% while simultaneously abolishing the spectral coefficients, Freiuk explained.
"This was perceived by the industry as a balanced solution, considering the state's need to finance military expenses," the GR advisor of Kyivstar said.
Overall, according to Freiuk, the decision to abolish the spectral coefficients will positively impact the telecommunications industry since their application created an uneven tax burden on market participants and led to distortions in the competitive environment. Additionally, "the state missed out on tax revenues from some market participants."
The GR advisor of Kyivstar expressed gratitude to the Verkhovna Rada for initiating the move toward the abolition of the surcharges. He hopes that "the problem will be resolved completely."