30 December 2016, Friday, 15:12 108

Poroshenko Seals Raising Excise Tax On Alcohol, Tobacco Products, Lowering Royalty On Oil Production

President Petro Poroshenko has signed into law the bill raising the excise tax on alcohol and tobacco products and lowering the royalty on oil production.

Ukrainian News Agency learned this from the bill’s page on the Verkhovna Rada website.

The excise duty on ethyl alcohol shall increase from the current UAH 105.80/litre to UAH 126.96/litre and on beer from UAH 2.48/litre to UAH 2.78/litre.

On low-alcohol products the excise tax shall increase 12%.

The law also provides for an increase from 2017 in the specific component of the excise duty on tobacco goods by 40% and the ad valorem component shall remain 12%

The law brings down the rates of royalty on oil production from 45% and 21% to 29% and 14% (depending on the depth).

It also approved the order of distribution of transfers from the budget for agricultural producers, which substitutes the special VAT treatment.

In 2017-2021, the annual amount of assistance must be at least 1% from the output in the agricultural sector.

The excise tax on Euro-4 and Euro-5 heavy distillates (gas oil) also shall increase 32.1% (EUR 30.5) to EUR 125.5 for 1,000 litres.

The royalty for the transit transmission of ammonium by pipeline transport shall double, from the current USD 2.4 to USD 4.8 per ton for 100km starting in 2017.

The document also raises the rate of user fees for radio spectrum for the needs of mobile communications in the 2300-2400MHz and 2500-2690 MHz bands by UAH 2,959 (73.31 times), to UAH 3,000 per MHz from January 1, 2017.

As Ukrainian News Agency earlier reported, the Rada on December 20 assented the raising of excise tax on alcohol and tobacco products and lowering the royalty on oil production.