The low VAT did not affect the exit of the fuel blind from the shade.
Lowering the fuel tax early last year was a mistake. As Daniil Getmantsev, chairman of the Verkhovna Rada’s financial committee, said in an interview with RBC-Ukraine, the situation on the black market has not changed.
“Remember the decision at the beginning of 2022 to abolish the excise tax and reduce the VAT rate to 7% on fuel. Did it lead to a white market? No! Illegal barrels grew like mushrooms after the rain,” Getmantsev said.
The deputy from the Servant of the People added that the return to the value-added tax (VAT) in the amount of 20% on fuel will take place on July 1 this year.
“I believe that the reduction of these rates was a huge mistake. It absolutely did not affect the price of fuel. It only affected the earnings of traders,” Getmantsev said.
The situation with fuel in Ukraine during a full-scale war
As UNIAN reported earlier, in March 2022, the fuel tax was reduced from 20% to 7%. In addition, the excise tax was abolished. Such steps were supposed to help consumers and businesses in the most difficult times of shock have fuel at an affordable price.
At the end of August last year, the Verkhovna Rada supported the return of the excise tax on fuel. It provided for the installation of an excise tax at the level of 100 euros / 1000 liters for gasoline and diesel fuel and 52 euros for gas.
On March 10, it became known that gas station chains had reduced gasoline prices.
On March 24, the price for autogas dropped below 20 hryvnia per liter, and already on March 28 it crossed the mark of 22 hryvnia per liter.