Cabinet proposes increase in excise duty on fuel by 13%
The Cabinet of Ministers of Ukraine has proposed that the parliament increases the excise duties on fuel by 13% for the period from January 1, 2016 until June 30, 2016, and the rate for petrol will grow from EUR 202 per tonne to EUR 228 per tonne.
The initiative is outlined in bill No. 3688 amending the Tax Code and some Ukrainian laws on the provision of the balance of budget revenues in 2016. The document was registered in the parliament on December 22.
The document retains benefits for production of alternative fuel with the increased content of bio-ethanol. The excise duty on it is EUR 112 per tonne, which is around 50% of the rate for petrol. Earlier it was planned to equal these rates.
The bill contains requirements on toughening control over payment of the excise duty on fuel.
The introduction of the excise consignment as a mandatory electronic document that will be drawn up for all fuel sale transactions is proposed.
The fuel sale electronic administration system will be created. It is aimed at supervising all the stages of selling fuel – from an oil refinery and customs borders of Ukraine to filling stations.
The document contains a provision that changes the units for measuring fuel from kilograms to liters (at temperature of 15 centigrade).