Light on health: why generators are dangerous and businesses should pay eco-taxes

The environmental tax that today’s generator-using entrepreneurs fear is levied in Ukraine for the release of pollutants, including CO2, into the atmosphere. But scale matters.

“Article 240.1 of Article 240 of the Ukrainian Tax Code provides that organizations that emit carbon dioxide (CO2) in an amount of not more than 500 tons per year are not taxpayers. That is, eIf the company uses less than 200 tons of total fuel per year to keep the generator running, you don’t have to pay environmental tax“, – explains Maxim Boyarchukov, managing partner of the law firm “Maxim Boyarchukov and Partners”.

To assess the scale, let’s take, for example, a diesel generator of 5 kW in kilograms, which is popular with small and medium-sized businesses and consumes about 1 liter of fuel per hour (0.2 liters per 1 kW). approx. 0.84 kg. Even if such a generator works 24 hours a day, it consumes about 7.4 tons of fuel throughout the year. If you use a powerful 220 kW diesel generator eight hours a day throughout the year, the cost will be about 108 tons per year.

Attorney Rostislav Kravets, Senior Partner of Kravets & Partners, confirmed this today Environmental taxation from generator users is not prescribed by law, but local authorities can impose it themselves.

Here it should be recalled how in December 2022 Ukrainian entrepreneurs were intimidated by the Main Directorate of the State Tax Service in the Volyn region, clarifying in its statement that its users must pay an environmental tax for the use of generators. The authors of the statement referred to paragraph 14.1.230 of Article 14 of the Tax Code of Ukraine, which refers to the taxation of fixed sources of pollution. It was Volyn tax authorities to which the generators were attributed.

However, Maxim Boyarchukov, XX of the Tax Code of Ukraine. temporarily, during the period of martial law in the territory of Ukraine and within 30 days from the date of its termination or cancellation, electric generator sets are not considered to be fixed sources of pollution.It is classified under the code 8502 according to UKT VED.

Also, the head of the fiscal and tax committee of the Verkhovna Rada, Daniil Getmantsev, criticized the above-mentioned resonance statement of the Main Directorate of the State Tax Service in the Volyn region. In his telegram channel, the politician stated that if the payer uses up to 200 tons of fuel per year, there is no need to pay environmental tax, and then added to his words the unprofessional statement of one of the regional directorates affiliated to the Main Directorate of the Ministry of Interior. The State Tax Service was withdrawn.

As Maxim Boyarchukov explains, if the annual volume of carbon dioxide emissions exceeds 500 tons, that is, more than 200 tons of fuel was used, then the person must register as a taxpayer during the tax (notice) period when such an excess occurs, file tax returns, calculate and pay taxes in the manner prescribed by the Tax Code of Ukraine. However, if he unlawfully requests the payment of such a tax from the tax administration, the addressee Focus He advised her to go to court.

The collective use of generators harms the environment. According to the All-Ukrainian Ecological Association, during the operation of a diesel generator, pollutants enter the atmospheric air – substances in the form of carbon monoxide, suspended solid particles (soot), nitrogen dioxide, C12-C19 hydrocarbons and sulfur dioxide. These compounds have adverse effects on human health and the environment.

“An additional noise load is created, diesel generators generate 88 dB noise, gasoline or gas powered generators can exceed 95 dB. These figures exceed the standard value of 55 dB during the day and 45 dB at night.” connection.

“De facto generators are internal combustion engines with the same operating principle as in cars. Accordingly, its emissions contain chemical compounds such as nitrogen, sulphur, dust, soot, and CO2 that adversely affect the climate.. Also, the noise from running generators is a nuisance,” he says. Focus Oleksiy Ryabchin, Adviser to the Deputy Prime Minister on European and Euro-Atlantic Integration of Ukraine, Deputy Minister of Energy and Environmental Protection in 2019-2020.

Impact of intensive use of generators Focus compares it with the results of importing into the country and using the corresponding amount of “Eurobles” on the roads.

Aleksey Ryabchin adds that now the issues of the country’s security and survival are ahead of even such important categories as ecology and environmental protection. However, in the long run, the expert advises Focusing on the development of a decentralized generation model in Ukraine that will reduce dependency on major electricity producers – nuclear and thermal power plants – while focusing on improving energy efficiency and reducing energy consumption.

Previously Focus He reported how much fuel is allowed for unlicensed storage for generators in Ukraine. same Focus He explained how lawmakers legalized the import of duty-free generators.