UCAB urges to maintain preferential fuel tax regime until end of war

19:52, 11.05.2023 1 min read

The Ukrainian Agribusiness Club​ Association (UCAB) calls on the Verkhovna Rada to maintain a preferential fuel taxation regime for the entire period of martial law and support relevant bill No. 9174.

"The abolition of the preferential tax regime for fuel from July 1, 2023, given that the hot phase of the war is still ongoing, is premature and will negatively affect the price level and financial stability of business entities," the business association said.

The UCAB said that, by a law adopted in September 2022, excises in the amount of EUR 100 per 1,000 liters of gasoline and diesel fuel were returned, while maintaining VAT at 7%. According to this law, from July 1, 2023, the level of VAT and excise taxes on fuel will return to the pre-war level: VAT to 20%, excise tax on gasoline to EUR 213, on diesel fuel to EUR 140 per 1,000 liters.

The business association considers it inappropriate to coincide with the complete abolition of benefits with the start of harvesting, when the demand for fuel from farmers increases.