Zelenskyy signed a law imposing an export duty on stone; the budget will receive half a billion per year
President Volodymyr Zelenskyy signed a law imposing an export duty on natural stone, including Ukrainian labradorite, granite, and gabbro. The National Association of the Mining Industry of Ukraine initiated the introduction of the duty.
New Rates
Under the new law, the rate will be 0.3 euros per kilogram, or 300 euros per metric ton, and will remain in effect for ten years. Law No. 4903-IX, adopted on the basis of Bill No. 15111-d, was published in *Holos Ukrainy* on October 22. The provision on the duty will take effect 45 days after the day following its publication.
The duty applies to unprocessed or roughly processed granite; granite that has only been cut or sawn into rectangular or square blocks and slabs; and other stones used for monuments and construction. The latter category includes, in particular, labradorite and gabbro.
The Association reported that, together with experts and market participants, it has consistently advocated for these changes since June. The goal of the initiative is to stimulate the processing of natural stone in Ukraine and the production of high-value-added products.
“Our task today is to transition from a raw materials-based model to the creation of high-value-added products, new manufacturing facilities, and jobs within the country,” the Association stated.
The Association’s rationale
When Ukraine exports unprocessed stone, a significant portion of the potential economic benefit is realized abroad. Foreign companies generate revenue from cutting, polishing, and manufacturing finished products. Developing domestic processing should enable Ukrainian businesses to sell higher-priced products, increase foreign currency revenue, and create jobs.
According to an estimate by Danil Getmantsev, chairman of the parliamentary finance committee, cited by the association, the introduction of the duty could generate approximately 463 million hryvnia in additional revenue for the state budget each year.
The association also emphasized that, following the signing of the law, the priority should be to translate the legislative decision into concrete economic results.
“Ukraine’s mineral resources must work for Ukrainian industry. The next step is the real development of the processing sector,” the Association stated.
This was reported by the National Association of the Extractive Industry of Ukraine (NAEIU), which initiated the introduction of the duty.
As a reminder, on October 15, the Verkhovna Rada approved a value-added tax (VAT) on goods that Ukrainians order from abroad and receive in international packages. Parliament passed this bill only on the third attempt. A total of 273 members of parliament voted in favor of the decision.
The value-added tax will apply to all small commercial orders of goods from foreign e-commerce platforms that were previously imported without paying taxes.
