Temporary cancellation of excise tax and reduction of VAT from 20% to 7% will reduce prices by a quarter
The Parliament considered and adopted as a basis and in general bill No. 7137-d, which contains conditions for reducing taxation for motor fuel. The abolition of the excise tax and the reduction of VAT from 20% to 7% will reduce the price of gasoline and diesel fuel, reports the Chronicle.info with reference to Focus. ) for fuel will reduce the price in retail chains by 25%. This position was voiced by Gennady Ryabtsev, director of special projects at the Scientific and Research Center «Psyche».
«In the structure of the cost of fuel, taxes now occupy up to 40%. The temporary abolition of the excise tax and the reduction of VAT from 20% to 7% will allow a quarter to reduce prices, which are now approaching 50 UAH/l», says Ryabtsev.
According to him, such a solution was offered to the Ukrainian to the government before February 24 to stabilize prices and ensure the filling of the market.
«Swift application of these changes will allow traders to secure new revenues and encourage more fuel sales. Plus they will use fuel from the «grey zone» — it is sold by companies that previously allowed themselves not always to pay excise tax. And now the state needs all the fuel», — says Gennady Ryabtsev.
Sergey Kuyun, director of the «Consulting Group A-95», also expects a reduction in fuel prices due to tax cuts.< /p>
«If we take the average quote from the beginning of March, the marginal cost of gasoline will be about 38 UAH/l, diesel fuel — about 35 UAH. This, respectively, is 8 and 5 UAH less than it would be under the current formula. It remains to wait for the final approval , Kuyun wrote on his Facebook page.
Before February 24th, they spoke in the Oil and Gas Association of Ukraine for tax cuts. This position is also supported by the OKKO gas station network.
The WOG gas station network considers the right decision to set a zero excise rate and reduce VAT to 7%.
«This will help speed up the process of filling the market with the necessary amount of fuel. This is especially important in the context of changing supplier countries and establishing new supply chains», the company said in response to Focus questions.
The company emphasizes that in the coming weeks, fuel consumption will increase from agricultural enterprises, because field work will begin, and «this step is certainly positive in the context of the country's food security».
Gennady Ryabtsev believes that traders will be able to provide farmers with the necessary volumes of fuel, including thanks to government decisions.
Recall that on March 12, President of Ukraine Volodymyr Zelensky announced the abolition of VAT and excise duty on fuel as part of tax initiatives for businesses .
For his part, Prime Minister Denys Shmyhal said that the government has submitted a bill to the Verkhovna Rada that abolishes the excise tax on fuel and reduces the VAT rate.
«This is significant Tax cuts 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 Denys Shmyhal.
On March 14, the Tax Committee of the Verkhovna Rada decided to support draft law No. 7137-d. The head of the committee, Daniil Getmantsev, spoke about this in his Telegram channel. The bill, among other things, provides for a zero excise tax on fuel and a reduction in VAT to 7%.