Mykolaiv approves land tax benefits for Nibulon

The city of Mykolaiv supported the granting of a tax break to Nibulon, despite concerns about possible losses for the city budget. In response, the company promised to transfer hundreds of employees to the city, increase personal income tax revenues, and offer compensation mechanisms for the community.

The decision was made at a meeting of the Standing Committee on Economic and Investment Policy of the Mykolaiv City Council.

The deputies discussed Nibulon's request for a land tax exemption. The main topic of discussion was possible losses for the city budget and mechanisms for compensating them.

The company's representative said that the company had already re-registered its agricultural division in Mykolaiv and planned to transfer some employees from other branches to the city. According to the company's representative, this will increase personal income tax revenues to the community budget. The company also reported that in 2025 alone, it paid more than UAH 108 million to the local budget of Mykolaiv.

However, some deputies expressed doubts about the realism of the claimed compensation. The deputies were interested in the number of employees to be transferred to Mykolaiv, the level of salaries, and the extent of layoffs at the company. A company representative said that up to 600 employees could be transferred to the new unit, and the average salary at the company is about UAH 25,000.

During the discussion, there were proposals to conclude separate agreements on mutual obligations between the city and the companies to guarantee the fulfillment of the promised compensation mechanisms. However, the deputies also warned that such agreements may require additional legal analysis.

As a result, the commission supported the recommendation to the executive bodies of the city council to prepare and submit to the session a draft decision on granting the privilege to Nibulon. The decision was voted for by 10 members of the commission, with two abstentions.

The deputies also agreed to ask other companies applying for tax breaks to provide written proposals for possible compensation for the city budget.

Nibulon applied to the city authorities for a land lease payment exemption back in March. The land in question is about 50 hectares of land near the seaport, which, according to the company, may be mined or contain explosives, making it impossible to use it at the moment.

The company has applied for a tax break worth UAH 14 million. At the same time, the company's representatives argue that the budget will be able to compensate for these losses by increasing revenues from personal income tax - according to their estimates, this could bring the city approximately UAH 20 million.

Анна Бальчінос