Revenues from the excise tax on gasoline are falling rapidly – the experts

Поступления с акциза на бензин стремительно падают – эксперты

Parliament should improve the administration of excise duty in retail, experts say.

The intention of the deputies of the Verkhovna Rada to change the distribution algorithm of the collection with retail sales of petroleum products to increase funding for road repairs and construction at the regional level will have no effect without urgent measures to improve the collection of this tax. This opinion was expressed by Director of “Consulting group a-95” Sergey Kuiun.

“Soon, simply have nothing to share. The retail excise tax revenues are falling rapidly, as fiscal service and local authorities are unable to control the payment of such tax, petrol stations,” – said the expert.

According to him, is especially deplorable is the situation with the collection of excise tax in retail trade with liquefied gas. According to research by “Consulting group A-95”, in January-February retail without paying the excise tax was implemented more than 75 thousand tons of propane-butane, which is about 40% of this market. Total budget losses are estimated at around 195 million UAH of excise duty and VAT.

The most critical situation is in Kiev and Kiev region, where today, according to various estimates, illegal to operate 500 retail points of sale of liquefied natural gas (AGFCS), the vast majority of which are traded without issuing cash receipt. The number of illegal items gas sales will soon equal the number of legal outlets, experts say.

According to experts of “A-95”, the only way out of this situation is the refusal from the retail excise tax with a simultaneous proportional increase basic excise duty on petrol, diesel fuel and liquefied gas. Basic excise duty for motor fuels easier to administer, as it is paid in advance when you import or manufacture. To preserve the principle of decentralization of public Finance is necessary to develop a system of equitable distribution of fuel excise by region, using the coefficients as the number of the population, consumption of fuels and number of vehicles in the regions.

“The transition to the new system of charging excise duty will increase budget revenues by no less than 1.7 billion USD per year, which among other things will enable local communities to increase road construction,” said Kuyun.

From January 1, the retail rate of excise tax is unified for all types of motor fuels and €0,042/L. taxed the entire amount, executed through a retail station.

Earlier it was reported that since March in Ukraine starts fighting with low-quality gasoline.