Implementation of the EU Fuel Excise Tax Directive: a balance is needed

Today, the difference between the excise tax rates on gasoline and diesel fuel in Ukraine and the EU is on average 40%. The Verkhovna Rada has decided to gradually rectify this situation.

On May 29, the draft Law No. 11256-2 «On Amendments to the Tax Code of Ukraine on the Implementation of the Provisions of the European Union's Excise Tax Acts» was introduced and adopted as a basis in less than a week.

The document proposes new rates of excise tax on fuel to their minimum level, as stipulated by Directive No. 2003/96/EC. Thus, while today the current excise tax rate on gasoline, diesel fuel and other carbohydrates is EUR 213.5 per 1,000 liters, in 2028 it will be EUR 359 (the figures for liquefied gas are EUR 52 and 70, respectively).

The Ukrainian National Bar Association's Committee on Customs and Tax Law warned that in order to optimize budget revenues, a balance must be found between raising excise rates and their impact on consumers.

Increasing excise taxes on fuel is an unpopular decision, as it disproportionately affects low-income households. Rising fuel prices will affect the purchasing power of the population. This could lead to protests and social unrest. Especially if such decisions are perceived by the population as unfair or burdensome.

It will also have a negative impact on business. An obvious consequence will be an increase in the financial burden on enterprises, an increase in the cost of transportation and production of Ukrainian goods, and thus a decrease in their competitiveness in the EU market.

Thus, the committee concludes, the likely negative consequences of the adoption of the law on the basis of its draft No. 11256-2 are significant and will further lead to a deterioration in the socio-economic situation of the population, an increase in prices for basic goods and services, as well as an increase in the overall inflation rate in the country.

The full text of the UNBA's Comments and suggestions is available by the link.

© 2025 Unba.org.ua Всі права захищені
"Національна Асоціація Адвокатів України". Передрук та інше використання матеріалів, що розміщені на даному веб-сайті дозволяється за умови посилання на джерело. Інтернет-видання та засоби масової інформації можуть використовувати матеріали сайту, розміщувати відео з офіційного веб-сайту Національної Асоціації Адвокатів України на власних веб-сторінках, за умови гіперпосилання на офіційний веб-сайт Національної Асоціації Адвокатів України. Заборонено передрук та використання матеріалів, у яких міститься посилання на інші інтернет-видання та засоби масової інформації. Матеріали позначені міткою "Реклама", публікуються на правах реклами.