The increase in excise duty on cigarettes and the increase of environmental taxes: the Rada endorsed the draft amendments to the Tax code

Увеличение акциза на сигареты и повышение эконалога: Рада поддержала проект изменений в Налоговый кодекс

The Verkhovna Rada has supported the bill No. 9260, which would increase the excise tax 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. Voted 233 deputies.

Online broadcast led official channel “Rada”.

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 intend 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 plan to raise 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.

Under the project, the increase rate of rental fee 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%.

Provided innovations about the 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 rate plan to apply fully after the transition period. This period runs from 1 January until 30 June 2019 at this time will be to 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.

Plan to improve control over the circulation of fuel. Plan 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.

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