KIEV: For strength of the economy and generate more revenue Ukraine Cabinet of Ministers has proposed increasing excise tax on gasoline by 2% (by EUR 4 per tonne), to EUR 202 per tonne. The proposal is contained in the draft of amendments to the Tax Code submitted to the Verkhovna Rada.
The government also proposes increasing the excise tax on heavy distillates (diesel fuel) of Euro 4 and Euro 5 standards by 2% (by EUR 2 per tonne), to EUR 100 per tonne, and for Euro 2 and Euro 3 standards by 3% (by EUR 4 per tonne), to EUR 132 per tonne.
At the same time, excise duty on light and middle distillates, kerosene and mineral spirits is to be raised by 11% (by EUR 20 per tonne), to EUR 202 per tonne, and on aviation gasoline by 7% (by EUR 2 per tonne), to EUR 32 per tonne.
Excise tax on jet fuel could rise by 21% (by EUR 4 per tonne), to EUR 23 per tonne.
According to the government’s proposals, excise tax on biodiesel, heating oil and fuel oil should grow by 4% (by EUR 4 per tonne), to EUR 102 per tonne.
The document also foresees the introduction of excise duty on liquefied natural gas (LNG) at EUR 6 per tonne, and excise tax on liquefied petroleum gas (a mixture of propane and butane, or propane) is to be increased by 14% (by EUR 6 per tonne), to EUR 50 per tonne.
In addition, the government has proposed introducing permanent excise duty on alternative motor fuel at EUR 202 per tonne (now the excise tax on such fuel has been set temporarily, until January 1, 2015, at EUR 99 per tonne).
As reported, excise tax on diesel fuel last rose in March, from EUR46-98 per tonne to EUR 98-128 per tonne (depending on the sulfur content). In July, excise duty was temporarily introduced (until the end of 2014) on alternative motor fuels at EUR 99 per tonne.
