The share of net profit due to be paid by SOEs to the budget is now set at 90% now / Photo from UNIAN
The national budget for 2020 provides for US$1.45 billion in revenue in the form of dividends from state-owned companies.
Ukraine's Ministry for Development of Economy, Trade and Agriculture has proposed that the share of net profit that state-owned enterprises (SOEs) transfer to the national budget in the form of dividends be reduced from 90% to 50%.
The relevant draft resolution of the Cabinet of Ministers was posted on the ministry's website on January 17.
"This is to approve the basic standard of deducting part of profit to pay dividends following business entities' financial and economic activities in 2019, whose charter capital includes the corporate rights of the state, as well as business entities, whose 50% and more percent of shares belong to the companies, the state's share in which is 100%, including subsidiaries, in the amount of 50%," the document said.
The draft resolution also proposes termination of contracts with CEOs of state-run companies if they fail to pay dividends to the national budget before July 1, 2020, based on the results of their financial and economic activities in 2019.
The national budget for 2020 provides for UAH35.268 billion (US$1.45 billion) in revenue in the form of dividends from state-owned companies, according to the explanatory note to the document.
As UNIAN reported earlier, the Cabinet of Ministers on April 24 increased the share of state enterprises' net profit to be channeled into the 2019 national budget from 75% to 90%.