Excise duties and VAT on fuel will increase in 2023

The Ministry of Finance has developed a draft law that provides for a more than two-fold increase in excise duties on liquefied gas and a gradual increase in excise duties on gasoline.

Currently, excise taxes are: 100 euros for 1000 liters of gasoline and 52 euros for 1000 liters of gas. The Ministry of Finance offers:

• increase the excise duty on liquefied gas more than twice – up to 125 euros per 1000 liters;
• return the full rate of excise duty on gasoline — 213 euros per 1,000 liters;
• establish a schedule for a gradual increase in excise taxes to 300 euros per 1,000 liters during 2023-2028.

Such changes are related to the implementation of the Association Agreement between the EU and Ukraine.

Even if the Verkhovna Rada does not support the draft law of the Ministry of Finance, fuel may still become more expensive in 2023. The reason is that from July 1, 2023, the VAT rate on fuel should return to the level of 20% (currently 7%).