1 Sep 2022 19:59

Higher oil prices, not reinstatement of excise tax will rather cause increase in prices at Ukrainian gas stations - Rada's finance committee head

MOSCOW. Sept 1 (Interfax) - The reinstatement of the excise tax on motor fuel is unlikely to result in an increase in its prices at gas stations, said Daniil Hetmantsev, head of the Verkhovna Rada committee on finances, tax and customs policy.

"There is a conclusion drawn by the Ministry of Economy, which predicts that the reinstatement of excise taxes will not result in an increase in fuel prices at the gas stations," he said during a national telethon on Thursday.

At the same time, he noted that the oil price on global markets should also be taken into account, as Ukrainian media reported.

"The rise the price of gasoline price may be not so much due to the reinstatement of excise duties, but to the increase in oil prices," he said.

That said, Hetmantsev assumed that the bill on excise taxes that was passed in the first reading, would shortly be submitted for consideration to the Rada for endorsement as a whole.

As reported, the Verkhovna Rada passed in the first reading the bill No. 7668-d finalized by deputies on the reinstatement of excise taxes on motor fuel.

"Thus, the excise duty on gas is reinstated in the amount of 52 euros/1,000 liters, the excise duty and VAT for alternative fuels is also equated to 100 euros/1,000 liters (VAT stands at 7%), the excise duty on gasoline and diesel fuel is also reinstated at 100 euros/1,000 liters," deputy Yaroslav Zhelezniak said on August 30.

The governmental bill No. 7668 set the excise tax at 100 euros/1,000 liters for all types of motor fuel, except for the alternative fuel, on which the excise tax is set at 162 euros/1,000 liters.