Ukraine's Verkhovna Rada passed a bill on the phased increase of excise duty on motor fuel with 231 votes, MP Yaroslav Zhelezniak reported on Telegram on Thursday.

"The Parliament passed bill No. 11256-2 on increasing the excise tax on fuel. The LPG amendment (No. 267) was also supported," he wrote.

As reported, on June 4, the Verkhovna Rada adopted bill No. 11256-2 at the first reading. The bill increases the excise tax rates on motor fuel without a sharp increase in excise on liquefied petroleum gas (LPG).

The bill provides a schedule for annual increases in excise rates from July 1, 2024, to January 1, 2028. Specifically, the excise on gasoline is to rise from the current EUR 213.50 per 1,000 liters to EUR 242.60 in July 2024, EUR 271.70 in 2025, EUR 300.80 in 2026, EUR 329.90 in 2027, and EUR 359 from 2028.

The excise on diesel fuel is to rise from the current EUR 139.50 per 1,000 liters to EUR 177.60 in July 2024, EUR 215.70 in 2025, EUR 253.80 in 2026, EUR 291.90 in 2027, and EUR 330 from 2028.

The excise on liquefied gas (propane or a mixture of propane and butane, LPG) is to rise from the current EUR 52 per 1,000 liters to EUR 55.60 in July 2024, EUR 59.20 in 2025, EUR 62.80 in 2026, EUR 66.40 in 2027, and EUR 70 from 2028.

The Verkhovna Rada Committee on Finance, Tax, and Customs Policy approved the bill for the second reading on July 4. Compared to the adopted bill, the committee proposed increasing the excise on LPG from the current EUR 52 per 1,000 liters to EUR 250 from 2028 instead of EUR 70.

The bill is to come into effect on September 1, 2024.