See more
Publication date: 14.05.2024
The Cabinet of Ministers INITIATED THE DRAFT ON APPROACHING THE LEGISLATION OF UKRAINE TO EU LEGISLATION IN THE PART OF EXCISE TAX
The Verkhovna Rada has registered the government project of the Law "On Amendments to the Tax Code of Ukraine on Approximation of the Legislation of Ukraine to the Legislation of the European Union in Excise Tax" (reg. No. 11256). This was reported by the representative of the Cabinet of Ministers in the Verkhovna Rada, Taras Melnychuk.
The draft law aims to bring the legislation of Ukraine in line with the norms of EU legislation in order to implement the Association Agreement between Ukraine and the European Union, the European Atomic Energy Community and their member states in terms of bringing excise tax rates closer to the minimum level established in the EU. The draft law was developed to implement Article 353 of the Association Agreement and Appendix XXVIII to Chapter 4 "Taxation" of Chapter V "Economic and Industry Cooperation" of the Association Agreement.
Draft Law 11256 provides for the following changes to the Tax Code of Ukraine:
provide a definition of the term "intermediate products" in accordance with the Directive dated 19.10.1992 No. 92/83/EEC on the harmonization of the structures of excise duties on alcohol and alcoholic beverages;
increase the excise tax rate for intermediate products from 8.42 to 12.23 hryvnias per 1 liter (by 3.81 hryvnias), i.e. at the level of the current rate for sparkling wines and carbonated wines, fermented beverages, flavored sparkling wines (beverages) (carbonated);
to establish new rates of excise tax on fuel, taking into account their minimum level, provided for by the Council Directive No. 2003/96/EC dated 27.10.2003 on the restructuring of the Community system of taxation of energy products and electricity, which will enter into force on January 1, 2028. In particular, it is proposed to set the following excise tax rates on the main types of fuel: on gasoline 359 euros per 1,000 liters, on gas oil (diesel fuel) - 330 euros per 1,000 liters, on liquefied gas - 277 euros per 1,000 liters. The schedule for the annual increase of such rates from 01.07.2024 to 31.12.2027 inclusive (within four years) has been established, taking into account the general difference between the rates provided for as of 01.01.2028 and the rates of excise tax on these goods in accordance with the current norms of the Tax Code ;
clarify the term "weighted average retail sale price of cigarettes", in particular, note that such a price is calculated from the sum of the total value of all cigarettes, taking into account all taxes realized by manufacturers in the customs territory of Ukraine and imported by importers into the customs territory of Ukraine.
You may be interested in the following articles: lawyer consultation, lawyer consultation, analysis of documents, legal analysis of the situation, written consultation, verification of documents by a lawyer, lawyers, documents, lawyer's assistance online, lawyer online, legal opinion, legal opinion of a lawyer, lawyer online
Conclusion
Draft Law No. 11256, registered in the Verkhovna Rada of Ukraine, is aimed at adapting Ukrainian legislation to European Union standards in the field of excise taxation, in accordance with the provisions of the Association Agreement between Ukraine and the EU. The main changes include:
Introduction of a new definition of the term "intermediate products" in accordance with the European Directive 92/83/EEC.Increasing the rate of excise tax on intermediate products to the level of the current rate on certain alcoholic beverages.
Establishing new fuel excise tax rates to take effect from 2028, with rates gradually increasing until then.
Clarification of the term "weighted average retail sale price of cigarettes".
These measures ensure the harmonization of Ukrainian excise legislation with European norms, which is an important step in fulfilling Ukraine's obligations under the Association Agreement with the EU. The increase in excise rates is aimed at reaching the minimum levels established in the EU, which can affect the market of alcoholic beverages, fuel and tobacco products in Ukraine, increasing their cost and contributing to an increase in budget revenues.
