Cabinet proposes to increase the excise tax on cigarettes by 9% and to increase environmental taxes to 10 UAH/tonne next year

Кабмин предлагает увеличить акциз на сигареты на 9% и повысить эконалог до 10 грн/тонну в следующем году

The increase in excise duty on cigarettes by 9%, increase in the environmental tax on CO2 emissions to 10 UAH/tonne and the tax parcels from abroad worth 100 Euro with value added tax. These changes provide was government draft amendments to the Tax code No. 9260.

According to the explanatory Memorandum, the bill provides for an increase from 1 July 2019 excise tax rates on tobacco products by 9% (projected inflation rate in 2018).

From 1 January 2019, it is proposed to increase the rate of the environmental tax on CO2 emissions of stationary sources from 0.41 UAH/ton to 10 UAH/ton, and to implement a phased rate increase to level 30 UAH/ton in 2023. Under this scheme propose to increase the tax rate to 5 UAH/ton annually. Such measures explain the need to encourage polluters to reduce emissions and bring environmental taxes to the level similar to EU countries.

The Cabinet proposes to increase the rate of rent for use of subsoil for the extraction of oil and condensate at 2 percentage points for iron ore0.8 percentage points.

Rate of rental fee for special use of forest resources are going to increase by 50%.

It is proposed to introduce innovations concerning postal parcels.

The draft law provides for recognition of tax agents Express carriers that will pay to the budget the accrual of value added tax in case of import into the country of goods in postal and Express shipments, unaccompanied baggage.

If one person receives from one sender abroad to the goods whose value in one telegram exceeds 100 euros, or in one cargo Express carrier, the goods will be subject to value added tax at the rate of the Tax code (20% of the tax base in accordance with the current paragraph 1 of article 193 of the Tax code).

This rule propose to apply fully after a transition period from 1 January to 30 June 2019, when will tax the goods in the premises in the amount of 150 euros.

The bill provides for the establishment of a zero rate of excise tax on ethyl alcohol, which is used for the production of edible vinegar, cosmetics and technical products. To control what it’s used for this alcohol, I want to install a list of requirements for businesses that receive it without paying excise duty (in particular, the mandatory installation of flow meters of the alcohol and manufactured products). It is established that changes in the administration of excise duty on fuel and alcohol will take effect from 1 July next year, and liability for violation of these standards from 1 October.

The Cabinet intends to increase the control over the circulation of fuel. I propose to consider the sale of fuel in the context of companies and in the context of storage – with reflection in the System of electronic administration of the sale of fuel (SEARG). We intend to compare performance in this System and indicators of the flowmeters – counters of the fuel level in the tank relative to the volume of turnover and balances of fuel in the context of codes according to UKT VED, excise warehouses and managers of excise warehouses.

All companies that produce, store and sell fuel at wholesale and retail, will have to obtain a license for such activities.

It is proposed to separately monitor the use of fuel for aviation and in the case of use of the product is not intended to apply to increase a factor of 10.

The project involves the introduction of separate accounting for the movement of alcohol in SEARCH.

We will remind, during a meeting of the conciliatory Council of Parliament on 5 November, the speaker of the Verkhovna Rada Andrei Parubiy said that the Cabinet urges Parliament on Thursday 8 November to consider the draft amendments to the Tax code. According to the Chairman of the Verkhovna Rada, the document plays an important role in the preparations for the adoption of the budget for the following year.

For his part, the head of the profile Committee, peoples Deputy from BPP Nina Southerner called on Tuesday 6 November to include the bill in the agenda of the session of Parliament.

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