The Cabinet of Ministers of Ukraine has proposed that parliament introduce excise duties on benzene and technical methanol of EUR 250 and EUR 400 per tonne respectively if they are used in motor fuel.

The initiative is stipulated in cabinet resolution No. 11395 registered in parliament on November 5, 2012.

According to the document, when benzene and methanol are used in chemical industry, excise duties are not imposed on them. Tax anticipation bills are issued for a period of up to 90 days, and the State Tax Service controls the use of benzene and methanol, creating ad hoc checkpoints at relevant enterprises.

The draft says that benzene and methanol for the needs of the chemical industry are shipped within quotas set by the Cabinet of Ministers of Ukraine.

"The approval of the draft will allow state controls to be set over sales of benzene and methanol, stopping the production of counterfeit motor fuel with benzene and methanol as add-ons and will result in an increase in revenues to the national budget," the government's press service reported.

According to statistics, in 2011, around 160,000 tonnes of benzene was made in Ukraine. Only around 34,000 tonnes of benzene was sent to chemical industry.

"Thus, almost 125,000 tonnes of benzene was used to produce counterfeit fuel as well," the cabinet said, noting that methanol is poisonous, and an increase in the concentration of benzene in the operation of internal combustion engines is hazardous to health and leads to environmental pollution.