In the summer in Ukraine, a tax of 20% will be refunded on all types of fuel. Accordingly, prices at gas stations will be slightly higher than they are now.
Increasing the value-added tax (VAT) level on gasoline, diesel and gas to 20% 1 July 2023, will cause an increase in fuel prices by 5-7 hryvnia. Ilya Neskhodovsky, director of the Institute for Socio-Economic Transformation, announced this on a telethon on Friday, March 31.
“If we increase VAT from 7% to 20%, there will definitely be an increase in price. From July 1, 2023, the fuel price will increase from 5 hryvnia to 7 hryvnia. So depending on how much you refuel, you can add 5 – 7 UAH per liter,” he said.
how much fuel is now
According to the Ministry of Finance, on March 31, gas stations sell fuel at the following prices:
- gasoline A-95 premium – 49.01 UAH / liter;
- Gasoline A-95 – 47.01 UAH / liter;
- gasoline A-92 – 46.14 UAH / liter;
- diesel fuel – 47.22 UAH / liter;
- automobile gas – 21.72 UAH / liter.
VAT level on fuel: what is already known
As early as February 23, 2022, President Volodymyr Zelensky announced the launch of the “economic patriotism” program. In addition to other items, the fuel tax was also reduced. Thus, they wanted to reduce the workload in Ukraine.
In March 2022, VAT was reduced from 20% to 7%. After that, there was a shortage of fuel in the major cities of Ukraine, and prices rose sharply. In May, the media reported that queues formed at gas stations for miles, with drivers having to queue for hours to refuel their cars. It is allowed to fill a tank with more than 10 liters of fuel at gas stations.
At the same time, energy expert Gennady Ryabtsev explained that the deficit is artificial. He noted that traders want to increase their profits in this way. According to Ryabtsev, when the VAT level was reduced, the excise tax was zero, the income of merchants could exceed the pre-war level.
On September 28, 2022, Zelensky signed a decree on the return of excise duty on fuel. Only the purchase of fuel for the needs of the Ministry of Defense remained unchanged. So the consumption tax remained zero.
As early as January 6, 2023, it was learned that the Ministry of Finance had prepared a draft law to increase the SCT for automobiles. It is planned to gradually double the SCT, especially in natural gas.
Meanwhile, on March 30, 2023, Danilo Getmantsev, chairman of the Rada committee on finance, tax and customs policy, announced that from July 1, the VAT level on fuel will again be 20%. The MP confirmed that the VAT reduction on fuel is an initiative of the Ministry of Economy. He also admitted that he was wrong.
Source: Focus
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