From July 1, 2023, Ukraine plans to return VAT and excise duties on fuel, which were abolished in March 2022, to the pre-war level. This decision was made by the Verkhovna Rada of Ukraine on September 21, 2022, voting for draft law No. 7668-d (currently Law of Ukraine No. 2618-IX), which cancels fuel tax benefits in two stages. This was reported by the press service of UCAB, writes agronews.ua.

The first took place in September 2022, when according to the provisions of Law No. 2618-IX, excise taxes in the amount of 100 euros per 1000 liters of gasoline and diesel fuel were returned. But at the same time, VAT remained at the level of 7%.

The second stage is planned from July 1, 2023, when excise taxes will be restored to the pre-war level and the VAT rate will be returned to 20%. After such changes, the excise duty on gasoline will more than double to €213, on diesel fuel by almost 40% to €140 per 1,000 liters.

Unfortunately, the period of complete cancellation of benefits coincides with the beginning of harvest and increased demand for fuel from farmers.

In addition, the cancellation of the preferential regime of fuel taxation from July 1, 2023, given that the hot phase of the war is still ongoing, is premature and will negatively affect the price level and financial stability of business entities.

Therefore, draft law No. 9174 is currently registered in the Verkhovna Rada, which proposes to preserve the preferential regime of fuel taxation for the entire period of martial law.