BP proposes to significantly increase excise duty rates on fuel from July 1
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New rates of excise tax on fuel may increase significantly in Ukraine as of July 1.
This is stated in draft law No. 9348the text of which appeared on the website of the Verkhovna Rada.
As noted in explanatory note, today a much lower rate of excise tax on liquefied gas makes this product much more attractive to the consumer compared to gasoline. In turn, today the liquefied gas market is import-dependent.
At the same time, Ukraine’s existing oil refining facilities are capable of supplying the domestic gasoline market in full.
Therefore, the draft law proposes to level the distortion between the excise tax rates between gasoline, diesel fuel and liquefied gas. Equalization should occur by increasing rates.
The project proposes to establish the following excise tax rates:
- for gasoline – 175 euros per 1000 liters,
- diesel fuel – 175 euros for 1000 liters,
- liquefied gas – 129.5 euros for 1000 liters.
According to the author of the draft law, a member of the Parliamentary Committee on Finance, Tax and Customs Policy, People’s Deputy Maryan Zablotskyi, such rates will provide the state budget with an income of UAH 6.4 billion per month, which is UAH 1.2 billion more compared to with the rates of the current edition of the Tax Code.
Starting from September 30, 2022, the following excise tax rates have been temporarily introduced for the period until the termination or cancellation of martial law on the territory of Ukraine, but no longer than until July 1, 2023:
- for motor gasoline, heavy distillates – EUR 100.00 per 1000 liters;
- for biodiesel and its mixtures, as well as for alternative motor fuel – 100.00 euros for 1000 liters,
- for liquefied gas, butane, isobutane – 52 euros for 1000 liters.
In addition, changes regarding value added tax are in force today. by law a VAT rate of 7% was established for operations involving importation into the customs territory of Ukraine and operations involving the supply of certain types of fuel and oil products to the customs territory of Ukraine. The term of validity of the specified VAT rate (7%) is limited to the period of martial law, but not longer than July 1, 2023.
We remind you:
Union of Ukrainian entrepreneurs urges the government postpone the deadlines for increasing the rates of value added tax and fuel excises and refuse to increase them from July 1.
Read also: Fuel taxes will be returned: when will it happen and how much will gas station prices increase
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