State Tax Service: modern rules for the bioethanol market should stimulate processing and investment

Press service of the State Tax Service of Ukraine, published 10 July 2026 at 14:23 Chapter: News

Creation of modern and understandable rules for the bioethanol circulation, development of domestic processing, deregulation and introduction of effective tax administration mechanisms became main topics of the round table “Bioethanol market of Ukraine: regulatory policy for processing development, attraction of investments and European integration”. Event was attended by team of the State Tax Service of Ukraine headed by acting Head of the State Tax Service Lesya Karnaukh.

Participants, during the discussion, discussed harmonization of Ukrainian legislation with the EU requirements, amendments to the Tax Code of Ukraine regarding excise tax and improving administration of bioethanol circulation, particularly when it is used in the fuel production.

“For the State Tax Service, it is important not only to ensure proper tax administration. We strive for Ukrainian raw materials to be transformed into Ukrainian product with high added value and for full-fledged production chains to be formed. These are new investments, new working places and more budget revenues, primarily from the value-added tax” – stated acting Head of the State Tax Service.  

Currently, 10 business entities have licenses for the bioethanol production in Ukraine, six of which carried out production in January – May 2026. During this period, 109 million liters of bioethanol were sold, while 97% of the production was exported.

During this time, the state budget received 41.7 million UAH of taxes from the bioethanol producers, including 12.1 million UAH of the income tax, 3.3 million UAH of the VAT.

“Bioethanol has a wide range of uses, so its regulation requires modern approach that will take into account various areas of product use and meet the European standards. Here it is extremely important that the rules are simple for business. We strive to create clear and comfortable mechanisms for administration, reporting and monitoring. Today, the State Tax Service is relying on a service interaction model with business. It is important for us to create conditions under which most questions will be resolved through compliance and prevention, and not through audits, appeals or litigation. This is much more effective for both the state and payers” – Lesya Karnaukh emphasized.

She added that within implementation framework of the National Program for Adaptation of Legislation to the EU Law, it is necessary to move on to practical work. Today, it is important to work together with business to develop specific regulatory mechanisms that will ensure transparent accounting, effective control, and at the same time not create unnecessary barriers to the industry development.