Amendment on Introduction of 5.5% Duty for Petroleum Products Import Has Been Rejected

Thursday, 7 Dec 2017

Amendment on Introduction of 5.5% Duty for Petroleum Products Import Has Been Rejected

Amendment on Introduction of 5.5% Duty for Petroleum Products Import Has Been Rejected

Verkhovna Rada Committee on Taxation and Customs Policy has rejected the amendment to the draft Tax Code providing for introduction of a protective duty for petroleum products import in the amount of 5.5%.

The initiative has been opposed by the Ukrainian Oil & Gas Association and market members a day before.

The introduction of petroleum products import duty in a new edition of Tax Code was opposed also by the President of Ukraine Mr. Petro Poroshenko. This was disclosed by Ukrainska Pravda e-paper referencing to a source in BPP (Block of Petro Poroshenko).

At the same time the deferring of mandatory installation of fuel flow and fuel volume metering devices at all oil depots and storages (excise warehouses) was approved for a period of 1 more year. The current revised Tax Code envisaged that this requirement should become valid starting from 1 January 2018.

The Ukrainian Oil & Gas Association believes that the deferring would cause deterioration of the excise tax administering and worsen the situation of illegal fuel turnover at the market.

Considering the struggle with illegal market transactions to be one of its priorities the Association experts intend to continue their work with market members in order to prepare them to the introduction of fuel turnover control system using fuel flow and fuel volume metering devices at excise warehouses.

leave your comment