Inclusion of retail fuel excise duty into basic rate to boost budget revenue by some UAH 8 bln
The inclusion of the retail fuel excise duty into the basic rate imposed on fuel imports and production would increase budget revenue by some UAH 8 billion a year, managers of oil traders participated in the press conference at Interfax-Ukraine on Thursday.
"We have calculated thanks to the new rules the central budget would additionally receive around UAH 5.6 billion of revenue from the excise duty and some UAH 1-1.2 billion from VAT. Local budgets would additionally receive near UAH 2 billion," Vice President of Galnaftogaz Concern Vasyl Danyliak said.
He said that the inclusion of the retail fuel excise duty into the basic rate would clear up the market from unfair players, as now they do not pay the retail excise duty putting legal sellers in the uncompetitive conditions.
"Retail excise duty and other mandatory fee evasion tricks have resulted in large price gaps used by illegal players. We see than only in Kyiv over the half of gas skids are installed with elementary violation of all requirements and it is likely that they do not pay large taxes to the budget. In two or three years the number of such skids reached 450-500 only in Kyiv… We believe that these changes [the inclusion of the retail excise duty to the basic rate] would neutralize the shadow market by 99%," WOG Director General Serhiy Koretsky said.
The co-owner of KLO filling station chain Viacheslav Steshenko said that amendments to the excise duty legislation would help to increase revenue of the budgets of all levels and knock the bottom out of the shadow market.