the-government-approved-the-gradual-increase-of-excise-taxes-on-fuel-and-some-alcoholic-beverages-to-the-eu-minimum-levels-ministry-of-finance

The Government approved the gradual increase of excise taxes on fuel and some alcoholic beverages to the EU minimum levels - Ministry of Finance

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The government has approved the gradual approximation of excise tax rates to the minimum level set in the EU, affecting fuel and  alcoholic beverages in terms of the definition of "intermediate products" - wine and other fermented beverages, the Finance Ministry said on Friday, UNN reports.

Details

"Today, on March 22, the government approved the draft Law of Ukraine "On Amendments to the Tax Code of Ukraine on Approximation of Ukrainian Legislation to the Legislation of the European Union in Terms of Excise Tax," the statement reads.

According to the Ministry of Finance, the revision of excise taxes is due to the need to harmonize national legislation with EU legislation as Ukraine becomes a candidate country for membership in the bloc.

The draft law, as stated, proposes to amend the Tax Code of Ukraine in order to:

- to bring the classification of alcoholic beverages in line with the provisions of EU Council Directive 92/83/EEC in the part concerning the definition of the term "intermediate products" - wines and other fermented beverages, which are classified under codes 2204, 2205, 2206 according to the Ukrainian Classification of Goods for Foreign Economic Activity;

- increase the excise tax rate for intermediate products from UAH 8.42 to UAH 12.23 per 1 liter (by UAH 3.81), i.e. to the level of the current rate for sparkling wines and carbonated wines;

- bringing the excise tax rates on fuel to the minimum levels of such rates established in the EU gradually over 4 years.

The Ministry of Finance expects that the implementation of the provisions of the draft law will "provide additional revenues to the state budget in the second half of 2024":

  • from fuel sales - by UAH 1.6 billion on average per month. This included UAH 1.3 billion from excise tax and UAH 292 million from value added tax;
  • from the sale of intermediate products - by UAH 4.5 million per month from excise tax (the calculation is based on the sales volumes envisaged in the State Budget of Ukraine for 2024).

"This is important for maintaining the country's security, as all of our own revenues are directed to the security and defense sector," the Ministry of Finance said.

Уряд схвалив законопроект про поступове підвищення акцизів на сигарети15.03.24, 17:51

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