The State Fiscal Service of Ukraine has called on local government agencies to introduce a 5% excise tax on retail sales of excisable goods (alcohol, beer, tobacco, fuel) in line with amendments to the Tax Code.
"With the purpose of the observation of the Tax Code, we propose that local self-government agencies establish excise duty rates on retail sales of excisable goods in January 2015," State Fiscal Service Head Ihor Bilous said, during a phone meeting with regional agencies about budget decentralization, held in Kyiv on Tuesday.
He said that if local self-government agencies do not introduce the tax, it will be collected anyway.
"If rural or town councils do not decide on the introduction of the tax, according to the Tax Code requirements, the 5% excise duty on retail sales of excisable goods will be collected," Bilous said.
He said that the base for paying the tax will be the cost of excisable goods with value added tax. The tax is paid at retail outlets selling excisable goods within 30 calendar days, following the last day of the reporting month when the excisable goods were sold.
