Parliament approves fuel excise tax increase in the first reading
4 June 2024 17:56
The Verkhovna Rada of Ukraine has approved in the first reading the draft law No. 11256-2, which increases excise taxes on fuel in Ukraine. This was reported by "Komersant Ukrainian"
This is an alternative bill to the draft law No. 11256. This alternative document proposes a lower tax rate on liquefied petroleum gas than the main one.
The explanatory note to the draft law states that this is a way to gradually increase fuel excise taxes to comply with EU regulations, as the EU has a minimum excise tax on fuel. Specifically, it refers to Directive 2003/96/EC.
“In order to establish a fair level of excise tax rates that will fully comply with the provisions of Directive 2003/96/EC, the alternative draft law proposes to bring the current provisions of the Tax Code of Ukraine in line with the provisions of Directive 2003/96/EC and to set the following excise tax rates: for petrol – EUR 359 per 1,000 litres, for diesel fuel – EUR 330 per 1,000 litres, for liquefied gas – EUR 70 per 1,000 litres,”
– says the explanatory note.
These figures are expected to be reached in 2028, so the excise tax increases will be gradual.
According to MP Yaroslav Zheleznyak, the draft law is based on the original submission of the Cabinet of Ministers. It proposes lower rates specifically for liquefied gas. According to this document, the tax increase schedule looks like this:
Energy expert Oleksandr Sirenko says that if the tax is raised, liquefied gas in Ukraine will become more expensive than in the EU as early as July.
