Fuel excise taxes and VAT can bring about UAH 30 billion to state budget per year – expert

An increase in fuel excise taxes and VAT will help cover deficits in the state treasury adding about UAH 30 billion to the country’s budget per year.

Serhii Kuiun, fuel market expert shared this opinion during a briefing at Media Center Ukraine.

“According to the calculations of the Ministry of Finance and our calculations, we are talking about an additional UAH 2.7-2.8 billion every month. This includes excise taxes and VAT. Accordingly, this increase alone will generate about UAH 30 billion per year. But January 1 next year marks the start of another stage, which will bring about an equivalent, (an increase – Ed.) of the same amount approximately. That is, it will account for UAH 4-5 billion every month. I believe that this is a considerable amount that will allow us to actually fill the budget,” he said.

According to the expert, apart from the European integration obligations, the increase in fuel excise taxes is aimed at eliminating the deficit in the state budget.

“One of the main messages was that we need to bring our regulations on taxation of oil products in line with the European Union. There is a corresponding directive defining the minimum rates. But, as many have commented, it is strange for us to work on the implementation of tax legislation, especially since we are not an EU member, and it does not apply to us. In fact, I believe that everyone understands the times we live in, and this topic has been widely discussed in the public — probably, today this is the main topic — the need to eliminate the budget deficit, which reaches UAH 500 billion. And this is one of the steps aimed specifically at replenishing the state treasury,” Serhii Kuiun added.

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