Eva Antonenko
06 October 2022 11: 00
Headings: News Society Economy

There is no limit to taxes: in 2023, excises and VAT on fuel can be raised even more in Ukraine

War and rising fuel prices are no longer a reason to keep preferential taxation.

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There is no limit to taxes: in 2023, excises and VAT on fuel can be raised even more in Ukraine

Excises on gasoline and diesel, as well as VAT on them, may rise again in 2023. This is provided by the signed President of Ukraine Vladimir Zelensky by law on amendments to Section XX "Transitional Provisions" of the Tax Code of Ukraine on excise tax rates for the period of the legal regime of martial law or state of emergency.

According to the adopted document, the established tax rates for deliveries to the customs territory of Ukraine and import into the customs territory of Ukraine of motor gasoline, heavy distillates, liquefied gas, biodiesel, alternative motor fuel will be valid no longer than until July 1, 2023.

Recall that on September 21, the Verkhovna Rada returned the excise tax on fuel:

  • for gasoline - at the level of 100 euros / 1000 liters;
  • for diesel - at the level of 100 euros / 1000 liters;
  • for biofuels - 100 euros / 1000 liters;
  • for gas - 52 euros / 1000 liters.

At the same time, the preferential VAT rate for fuel was left at 7%, introduced to contain fuel prices during the war. Now the preservation of preferential VAT is also provided only until July 1, 2023.

This law was adopted to increase revenues to the State budget: deputies expect that after the return of the full excise rate on gasoline and diesel to the pre-war level (20%), Budget revenues will increase by at least UAH 13,6 billion.

The main part of the 2023 budget revenues is taxes

According to the draft State Budget for 2023, tax revenues should provide more than 90% his income. For comparison: in the 2022 budget, it was assumed that the country would receive 77,5% of income. This is probably due to the reduction in foreign economic activity and profits from product exports.

At the same time, in 2023, in numerical terms, there will be a significant reduction in tax revenues compared to 2022.

There is no limit to taxes: in 2023, excises and VAT on fuel can be raised even more in Ukraine - photo 1

Thus, taxes next year will bring the budget 4% less than in 2022: income from income tax will decrease by 18,4%, from internal taxes on goods and services - by 4,8%, from other taxes and fees – by 46%.

At the same time, it is expected that revenues from excises on fuel will fall the most - by more than 93%, and this is explained primarily by the fact that fuel processing has practically ceased in the country due to the war. Besides, reduced consumption of imported fuel.

It is likely that after Zelensky signs this law, the volume of budget profits from fuel taxes will be revised upwards.

Recall that earlier in the Ukrainian government, in order to stimulate the development of the economy, they wanted drastically reduce taxeshowever, this initiative was not supported.

We also wrote about what new taxes and the abolition of what tax benefits does the Ministry of Finance plan to fill the budget in 2023and told what categories of Ukrainians and under what conditions may not pay taxes because of the war.

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