Increase in excise tax on fuel and alcohol
At a meeting on 10 May, the Cabinet of Ministers approved a proposal for a draft law "On Amendments to the Tax Code of Ukraine regarding the approximation of the tax legislation of Ukraine to the European Union norms in the field of excise duties". This was announced by the government representative in the Verkhovna Rada, Taras Melnychuk.
The bill will be submitted to the Verkhovna Rada for consideration. It proposes to define the concept of "intermediate products" as drinks, such as wine and other alcoholic beverages, ready for consumption, whose actual ethyl alcohol content is from 1.2% to 22% by volume.
It also provides for:
- increasing the excise tax rate from UAH 8.42 to UAH 12.23 per 1 litre (by UAH 3.81) for intermediate products (up to the level of the current rate on sparkling and carbonated wines, fermented beverages, wines (beverages) flavoured sparkling (carbonated);
- setting new excise tax rates for fuels, taking into account their minimum level, in accordance with Directive 2003/96/EC, which will come into force from 01.01.2028.
Thus, it is proposed to set the following excise tax rates:
- on petrol 359 euros per 1000 litres,
- on gasoil (diesel fuel) - 330 euros per 1000 litres,
- for liquefied gas - 277 euros per 1000 litres.
At the same time, a plan is provided to increase these rates annually from 1 July 2024 to 31 December 2027 (inclusive), taking into account the overall difference between the rate levels set on 1 January 2028 and the current excise tax rates under current legislation. Clarification is also added to the term "weighted average retail selling price of cigarettes".
