The Cabinet proposes to the Verkhovna Rada to raise excise taxes on gasoline and alcohol

From July 1, Ukraine plans to increase excise duties on alcohol and gasoline in order to bring them into line with EU legislation.

This was reported by the representative of the Cabinet of Ministers in the Verkhovna Rada (the Ukrainian Parliament) Taras Melnychuk and the Ministry of Finance of Ukraine.

The bill proposes:

• define the term "intermediate products" in accordance with Directive No. 92/83/EEC;
• increase the excise tax rate for intermediate products from 8.42 to 12.23 hryvnias per liter (by 3.81 hryvnias), i.e. to the current rate for sparkling wines and sparkling wines;
• to establish new rates of excise tax on fuel, taking into account their minimum level, provided for by Directive 2003/96/EC, which will come into force on 01.01.2028.

At the same time, the schedule for the annual increase of such rates is established from July 1, 2024 to January 31, 2027 inclusive.

It is also proposed to clarify the term "weighted average retail price of cigarettes" and to note that such a price is calculated from the sum of the total value of all cigarettes, taking into account all taxes realized by manufacturers in the customs territory of Ukraine and imported by importers into the customs territory of Ukraine.

The Ministry of Finance says that this will make it possible to provide additional revenues to the state budget in the second half of 2024:

• from fuel sales operations — by 1.6 billion hryvnias per month on average. Of them, 1.3 billion hryvnias from excise tax and 292 million hryvnias from value added tax;
• from operations on the sale of intermediate products — 4.5 million hryvnias per month from the excise tax (the calculation is made taking into account the sales volumes provided for in the State Budget for 2024).

"This is important for maintaining the security of the country, because all own revenues are directed to the security and defense sector," the Ministry of Finance added.

Currently, this is not a final decision, because the draft law still needs to be approved by the Rada.