Ukraine

The draft law on changing the rules of the “eRecovery” program was registered in the Verkhovna Rada

The document provides for the procedure for recognizing a settlement as an area unfit for life.

Ukrainians can be exempted from the pension tax when buying a home in exchange for a housing certificate “eRecovery”, and the compensation funds will be allowed to be used to repay the loan for the purchase of a new property instead of the destroyed one. This was reported by the head of the Verkhovna Rada committee on the organization of state power, local self-government, regional development and urban planning, head of the “Servant of the People” party, Olena Shulyak. transmits RBC-Ukraine.

The main provisions of the draft law

  1. Abolition of the pension tax: draft law No. 11444 proposes to exempt citizens of Ukraine who buy housing with the funds of the “eRecovery” program from the mandatory state pension tax.
  2. Flexibility in the use of compensations: compensation funds can be used to repay a loan for the purchase or investment in a residential real estate object, or the land plot on which this object is located.
  3. Protection of current accounts: current accounts opened for the crediting of compensation cannot be seized or levied within the scope of the Law “On Enforcement Proceedings”, except in cases where the compensation was obtained illegally.
  4. Inspection of housing: the need to inspect a dwelling located on a territory unfit for life is canceled and equated to a destroyed object.
  5. Responsibility for inappropriate use of funds: responsibility for misuse of compensation funds is established.

Justification of the draft law

Olena Shulyak emphasized that during the public consultations on the improvement of the “eRecovery” program, the participants repeatedly emphasized the need to revise some of the laws, as they significantly restricted Ukrainians. All these changes are reflected in draft law No. 11444, which was registered in the parliament a few days ago.

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“The draft law proposed by us regulates the entry of information about damaged/destroyed real estate objects into the Register of Damaged and Destroyed Property for purposes not related to the provision of compensation. This is relevant to avoid the assessment and payment of tax on real property other than land.”, – noted Shulyak.

Previous changes

Also, the Verkhovna Rada registered draft law No. 11440, which proposes to simplify the process of receiving compensations “eRecovery” for citizens whose housing is not entered in the State Register of Property Rights. This will eliminate the need to apply to the Bureau of Technical Inventory (BTI) for an extract of the right to ownership of housing, which will greatly simplify the procedure for receiving compensation.

“If draft law No. 11440 is adopted, it will not be necessary to obtain an extract from the BTI if the archives are lost or located in temporarily occupied territories. This will reduce the burden on the judicial system and make the process of obtaining compensation easier.”, – concluded Olena Shulyak.

 

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