Serhii Kuyun, director of the A-95 Consulting Group, predicts that after the return of fuel taxes to the pre-war level, gasoline prices will rise by 23.7%, and diesel prices by 16.2%.
He wrote about this on Facebook, Ukrainian News Agency reports.
"From July 1, 2023, it is planned to return fuel taxes to the pre-war level. At the same time, not only VAT (from 7 to 20%), but also excise taxes. I consider this decision to be correct. First, money is desperately needed. Second, prices for oil fell. March 2022 - USD 140, now - USD 75 per bar. Thirdly, the reduction of VAT led to abuses by some importers, who, due to the low tax, began to extract profits from the country by fictitiously inflating the prices of imported petroleum products. When VAT is 20%, it is more profitable to leave the profit in the country. Accordingly, the state has a chance to receive income tax as well," he wrote.
Kuyun also forecast the rise in fuel prices after the return of taxes to the pre-war level.
"By how much will prices rise. If we focus on the current situation and the return to pre-war excise taxes, then as follows: gasoline - by UAH 11.2 per liter (from UAH 47.17 to UAH 58.35 per liter), diesel fuel - by UAH 7.7 per liter (from UAH 47.43 to UAH 55.10 per liter), LPG - by UAH 2.6 per liter (from UAH 21.77 to UAH 24.40 per liter). This shows again that the return to the old excise duties as before some kind of dogma looks strange. Gasoline is flying up, liquefied gas is almost in place. As before, I consider it necessary to adapt to new realities and use the opportunity to balance rates. Conditionally, the excise tax on gasoline is by UAH 3 per liter lower and the excise tax is by UAH 3 per liter higher on liquefied gas. And price proportions will be preserved, and the budget will be full," the expert noted.
As Ukrainian News Agency earlier reported, the Member of Parliament from the Servant of the People faction, the head of the Parliamentary Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev, states that starting July 1, the rate of value added tax (VAT) on fuel is planned to be returned to the pre-war level - 20%.
In September 2022, President Volodymyr Zelenskyy signed a law by which the Verkhovna Rada established an excise tax on gasoline and diesel fuel in the amount of EUR 100 per 1,000 liters.
On March 15, the Verkhovna Rada canceled the excise tax on fuel and reduced the rate of value added tax (VAT) on its supply and import from 20% to 7%.
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