In connection with entry into force of the Law of Ukraine № 3878-IX as of 18.07.2024 "On amendments to the Tax Code of Ukraine regarding implementation of provisions of acts of the European Union on excise tax" (hereinafter – Law № 3878), which was published in the newspaper "Holos Ukrayiny" on 01.09.2024, new excise tax rates apply to gasoline, gas oil (diesel fuel), liquefied gas, and alternative motor fuel starting from 01.09.2024.
Therefore, from 01.09.2024 to 31.12.2024 inclusively, the following excise tax rates have been established for:
gasoline – 242.6 euros per 1000 liters;
gas oil (diesel fuel) – 177.6 euros per 1000 liters;
liquefied gas – 148 euros for 1000 liters;
alternative motor fuel – 184.08 euros per 1000 liters.
Changes introduced by the Law № 3878 to the Tax Code of Ukraine (hereinafter – Code) also provide for:
- definition of the "intermediate products" term according to Directive № 92/83/EU as of 19.10.1992 on the harmonization of excise tax structures on ethyl alcohol and alcoholic beverages (new Sub-paragraph 14.1.261 was added to Paragraph 14.1 Article 14 of the Code);
- increase in the excise tax rate for intermediate products from 8.42 to 12.23 UAH per 1 liter (by 3.81 UAH), that is, at level of the current rate for sparkling wines and carbonated wines, fermented beverages, flavored sparkling (carbonated) wines (beverages) (changes to Sub-paragraph 215.3.1 Paragraph 215.3 Article 215 of the Code). According to Paragraph 1 Section II "Final Provisions" of the Law № 3878, changes regarding increase in the excise tax rate for intermediate products will enter into force and take effect on 01.12.2024;
- establishment of new excise tax rates on fuel in view of their minimum level provided for by the Council Directive 2003/96/EU as of 27.10.2003 on the restructuring of Community system for taxation of energy products and electricity.
In particular, the following excise tax rates have been established for main types of fuel from 01.01.2028 for:
gasoline – 359 euros for 1000 liters;
gas oil (diesel fuel) – 330 euros for 1000 liters;
liquefied gas – 250 euros for 1000 liters;
alternative motor fuel – 272.4 euros per 1000 liters.
At the same time, the new Paragraph 48 of Sub-section 5 Section XX "Transitional provisions" of the Code establishes schedule for annual increase of excise tax rates on fuel from 01.09.2024 to 31.12.2027 inclusively (for four years);
- clarification of the term "total amount of the excise tax liabilities on cigarettes" and calculation of share of the total amount of the excise tax liabilities in weighted average retail price of cigarettes (including excise tax from retail sale of excisable products);
- clarification of the term "weighted average retail price of cigarette sales", namely: weighted average retail price of cigarette sales is specified – price calculated from sum of the total value of all cigarettes (taking into account all taxes, including amount of the excise tax on retail sale of excisable products), sold by manufacturers in the customs territory of Ukraine and imported by importers to the customs territory of Ukraine for a period from January 1 to December 31 inclusively of reporting year, divided by the total amount of cigarettes sold by manufacturers and imported by importers for the same period, determined in the excise tax declarations for January – December of the reporting year, at the rate of 1000 pieces.
Paragraph 1 Section II "Final Provisions" of the Law № 3878 stipulates that changes regarding clarification of these terms will enter into force and become effective on 01.01.2025.