Ukrainian President Volodymyr Zelenskyy has signed bill No. 11256-2, which provides for a significant increase in excise duties on fuel. The initiative, which comes into force on September 1, has sparked widespread discussion among experts and business representatives, as it is expected to lead to an increase in prices for gasoline, diesel fuel, and liquefied gas.
Main provisions of the law
According to the new law, by 2028, excise tax rates on fuel will gradually increase and reach the following rates:
- Gasoline : 359 euros per 1000 liters
- Diesel fuel : 330 euros per 1000 liters
- Liquefied gas : 70 euros per 1000 liters
As reported by People's Deputy Yaroslav Zheleznyak, the law will come into effect after publication in the official publication, which is expected in the near future.
The purpose of increasing excise taxes
The main goal of increasing excise taxes is to provide additional revenues to the state budget, which will be directed to supporting the Armed Forces of Ukraine. Due to the ongoing war in the country, financing the army remains one of the priorities of state policy.
Economic impact
According to preliminary estimates, the increase in excise taxes will lead to an increase in the price of diesel fuel and gasoline by approximately 1.5-2 hryvnias per liter. This, in turn, may cause a general increase in prices for all goods, since fuel costs are a significant component of the cost of any production.
Dmytro Lyushkin, founder of the Prime logistics group, warned that the new fuel prices will affect all sectors of the economy, as most businesses depend on transportation and electricity. This is especially true for businesses that operate on generators during mass power outages.
Expert opinions
Danylo Hetmantsev, the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, noted that the increase in excise duties could lead to a rise in prices, but, he said, this effect should not be so significant as to significantly affect the overall inflation rate. However, other experts express concerns that the additional tax burden could complicate the recovery of the economy after the war.
