From July 1, VAT on fuel will return to 20% (it was canceled from the beginning of the Russian invasion, and since September it was set at 7%).
The head of the financial committee of the Verkhovna Rada, Daniil Getmantsev, said in an interview with RBC Ukraine that the initial reduction in VAT from 20 to 7% was erroneous.
Remember the decision at the beginning of 2022 to abolish the excise tax and reduce the VAT rate to 7% on fuel. Did it lead the market to go white? No! Illegal barrels sprouted like mushrooms after the rain. I believe that lowering these rates was a huge misconception. This did not affect the price of fuel at all. This only affected the earnings of traders, he said.
Experts began to assume that in this case, from July 1, fuel prices will rise.
Recall that in March 2022, the Verkhovna Rada adopted a law on additional tax incentives to support businesses during the war. The law established a zero excise rate for gasoline, diesel and gas, and also reduced VAT from 20% to 7%.
In August, the parliament returned the excise tax on fuel, but the VAT has so far remained at 7%. However, the law states that all benefits are valid no later than July 1, 2023.
President of Ukraine Volodymyr Zelensky announced the abolition of VAT and excise duty on fuel.
For its part, Prime Minister Denys Shmihal said that the government had submitted a bill to the Verkhovna Rada that would abolish the excise tax on fuel and reduce the VAT rate.
This significant tax cut would help stabilize prices and prevent shortages. We are also considering a proposal to reduce VAT to 0% if the logistics costs of fuel suppliers grow,” said Denis Shmigal.
Source: Racurs
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