The Council voted to increase excise taxes: what to expect from gas and fuel prices
The main goal of the project is to bring the legislation of Ukraine into compliance with EU norms for the implementation of the Association Agreement.
On July 18, the parliament adopted draft law No. 11256-2 on increasing the excise tax on fuel. First Deputy Chairman of the Verkhovna Rada Committee on Tax Policy Yaroslav Zheleznyak reported, that amendment No. 267 regarding gas was also supported. The bill was supported by 231 votes.
In this connection, the prices of gasoline and gas will increase. People’s deputy Iryna Gerashchenko noted that the price of gasoline and diesel fuel will increase by UAH 1.66 per liter already in September. According to the government, this increase is insignificant.
The goal of the project is to bring the legislation of Ukraine in line with the EU norms for the implementation of the Association Agreement by establishing national excise tax rates in accordance with Directive No. 2003/96/EC.
Economist and member of the Economic Discussion Club Oleg Pendzyn estimated that the price of gasoline due to the increase in excise duties will be 8-9 UAH/l by 2028. The price increase will be gradual.
The expert believes that the increase in the cost of automobile fuel for Ukrainians can go almost unnoticed, since the main factor in the formation of fuel prices is the prices in Europe.
“An increase of UAH 8-9 is expected by 2028. Currently, the increase is insignificant: the excise tax on a ton of gasoline will increase from EUR 213 to EUR 242, which will add UAH 1-1.5 per liter. By 2028, the excise tax will reach EUR 359 per ton, which actually meets European standards and will add UAH 8-10 per liter”, – explained Pendzin.
