government-approves-increase-in-excise-taxes-on-some-alcoholic-beverages-and-fuel-melnychuk

Government approves increase in excise taxes on some alcoholic beverages and fuel - Melnychuk

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The Cabinet of Ministers has approved a draft law on amendments to the Tax Code of Ukraine to approximate Ukrainian legislation to EU legislation in terms of excise tax, proposing to increase excise taxes on certain alcoholic beverages and fuel, government representative in parliament Taras Melnychuk said on Friday, UNN reports.

Details

The draft law provides for an increase in the excise tax rate from UAH 8.42 to UAH 12.23 per 1 liter (by UAH 3.81) for "intermediate products" (to the level of the current rate for sparkling wines and carbonated wines, fermented beverages, flavored sparkling wines (beverages).

It also proposes to define the term "intermediate products" as wines and other fermented beverages (including mixtures of fermented beverages and mixtures based on fermented beverages) whose actual strength is higher than 1.2% by volume of ethyl alcohol, but not higher than 22% by volume of ethyl alcohol.

In addition, the law provides for the establishment of new excise tax rates on fuel, taking into account their minimum level, in accordance with EU legislation, which will come into force on January 1, 2028.

Thus, it is proposed to set the following excise tax rates:

  • for gasoline 359 euros per 1000 liters, 
  • gas oil (diesel fuel) - 330 euros per 1000 liters, 
  • for liquefied gas - 277 euros per 1000 liters.

At the same time, a schedule of annual increases in such rates from 01.07.2024 to 31.12.2027 (inclusive) is provided, taking into account the overall difference between the rates provided for as of 01.01.2028 and the excise tax rates provided for by the current legislation.

It also clarifies the term "weighted average retail price of cigarettes". 

Add

In March, the Ministry of Finance already reported that the government had approved a draft law on raising excise taxes, but at that time, other figures for autogas were given.

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