The European Business Association called on the Government to exempt from taxation by land tax of the land of railway transport, which are under the railway canvas and its arrangement. In many EU countries, in particular in Germany, France, Great Britain, Poland, etc.. - such a land tax for railway enterprises is not applied at all. After all, the railway performs an important socio-economic function for local communities, providing interregional communication and creating jobs.

After the abolition of the tax benefit in 2019, Ukrzaliznitsa JSC pays billions of hryvnias of land tax annually. For 2020–2023 alone, this amount exceeded UAH 13.2 billion.

" As a result, the cost of railway transportation is growing, which directly affects the cost of logistics for business, ”said EBA.

But in Ukraine, the railway is forced to cover land tax expenses by raising freight tariffs for business. Thus, it is the business that actually compensates for the tax liabilities of Ukrzaliznitzі, and to that, also losses from passenger transportation, which in 2024 exceeded UAH 18 billion, experts of the Association noted.

" The Ministry of Development supported the position of the business community and confirmed the presence of unequal conditions in the transport sector.

The Association is convinced that the release of land tax lands will ensure the sustainable development of not only Ukrzaliznytsia, but also business and communities that depend on railway communication, ”summarized the EBA.

Earlier it became known that in 2026, Ukrzaliznitsa plans to increase tariffs for freight railway transport by 37%to cover growing losses from passenger transportation. At the same time, according to carriers, raising tariffs can lead to a drop in a cargo base by 15%, which will give UP only about 12 billion UAH of additional income. At the same time, losses for the economy will amount to UAH 96 billion, and 36 billion UAH tax revenues.