Eva Antonenko
15 August 2022 15: 45
Headings: News Society Economy

Road construction in Ukraine wants to be financed through excise taxes on fuel and the abolition of debt payments

But so far there is no money in the budget for this.

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Road construction in Ukraine wants to be financed through excise taxes on fuel and the abolition of debt payments

Yesterday appeared information that the government intends to return the excise tax on all types of fuel to the pre-war level. At the same time, two bills were registered in the country at once, which are aimed at restoring the road infrastructure destroyed by the war.

According to the first bill № 7668, the country proposes to increase the excise duty due to the fact that now there is a significant shortage of money to finance the road sector. The bill provides establish a single excise rate of 100,00 euros per 1000 liters for all types of fuel: motor gasolines, heavy distillates and other petroleum products, liquefied gas, butane and isobutane. Before the war, the rate was differentiated: for gasoline - 213,5 euros, for diesel - 139,5 euros, autogas - 52 euros.

The explanatory note to the bill states that in the conditions of war “There is a significant shortage of funds to meet debt obligations on loans raised by the state or under state guarantees for the development of a network of public roads, and there are practically no funds to finance road works».

It is expected that if the bill is passed, the state budget will receive an additional UAH 2 billion. on the road per month.

But the preferential VAT rate of 7% instead of 20% will not be raised yet.

It should be noted that such a decision will lead to an increase in the cost of fuel in Ukraine, and as a result, to an increase in the cost of almost all goods and services in the country, since their cost always includes a logistics component.

The government has also drafted a bill № 7669, which provides for the construction of alternative engineering structures for transport communication through water obstacles where road bridges have been destroyed, as well as the restoration of other necessary transport infrastructure.

According to the explanatory note, Art. 38 of the Law of Ukraine "On the State Budget of Ukraine for 2022" provides that in 2022 the funds of the state road fund are directed primarily to the fulfillment of debt obligations on borrowingsreceived by the state or under state guarantees, as well as to meet the needs of the defense sector, which makes it impossible to allocate funds from the state road fund (even if they are received in the required amount) to maintain the network of public roads of national importance in proper technical condition, as well as to carry out emergency restoration work on destroyed road sections and artificial structures.

The Draft Law proposes to exclude this article 38, which will make it possible to provide financial support for the implementation of the necessary road works.

Recall that from July 1, Ukraine returned the excise tax and customs tax on the import of cars into the country, which, however, did not bring enough profit to the state to repair and build roads. Most likely, and in this case, all the profits received were sent to pay off debts and for military needs.

Earlier we wrote that, according to the decision of the court, paid parking in Ukraine was outlawedand told how the cost of groceries has increased since the beginning of 2022.

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