VAT Rate On Fuel Planned To Be Returned To Pre-War Level Of 20% From July - Hetmantsev

Member of Parliament from the Servant of the People faction, chairman of the parliamentary committee on finance, tax and customs policy Danylo Hetmantsev says that from July the rate of value added tax (VAT) is planned to be returned from 7% to 20%.

He said this in an interview with RBC-Ukraine, Ukrainian News Agency reports.

"Remember the decision at the beginning of 2022 to cancel the excise duty and reduce the VAT rate to 7% on fuel. Did it lead to the market going into the white? No! Illegal barrels grew like mushrooms after the rain...From July 1, VAT on fuel will be restored to pre-war rates. I think lowering those rates was a huge mistake. It didn't affect the price of fuel in any way. It only affected the traders' earnings," he said.

As Ukrainian News Agency earlier reported, on March 15, 2022, the Verkhovna Rada reduced the value-added tax rate on fuel from 20% to 7%.