In June 2024, decisions may be made to increase some taxes and excise duties in Ukraine, but the real increase in budget contributions may come a little later. The Cabinet of Ministers is currently developing a draft law aimed at increasing taxes, in particular VAT and military levy. These changes may concern both a general increase in rates and the introduction of a military levy for entities applying a simplified taxation system.
It is planned to increase the military levy from 1.5% to 5%. The same rate of 5% may apply to individual entrepreneurs. The issue of increasing the VAT rate is still being discussed, the expected increase is 2-3%.
The draft law may be submitted to the Verkhovna Rada by the end of June. However, experts note that even if the document is quickly adopted, the new rates may not come into effect before September.
Excise taxes may also change in June. It is planned to increase excise taxes on tobacco products, alcohol, and fuel to finance the army. The increase in excise taxes will lead to a significant increase in gasoline prices.
In May, the Verkhovna Rada registered draft law No. 11256, which provides for an increase in taxes on excisable goods. In particular, it provides for a phased increase in the excise tax on fuel until 2028.
According to the text of the bill, by January 1, 2028, the excise tax on gasoline should be 359 euros per 1,000 liters, on diesel fuel - 330 euros per 1,000 liters, and on autogas - 277 euros per 1,000 liters.
We will remind, the Verkhovna Rada Committee on Finance, Tax and Customs Policy supported Reg. No. 11256 on increasing excise taxes on fuel at its meeting on May 31. The decision will lead to an increase in fuel prices for Ukrainian motorists as early as July.
