The All-Ukrainian Agrarian Council (VAR) has urged the Cabinet of Ministers to submit a draft law to the parliament regarding the establishment of a reduced excise tax rate on fuel for farmers, reported the association's press service.
The business association reminded that Law No. 3878-IX "On Amendments to the Tax Code of Ukraine Regarding the Implementation of Provisions of European Union Legislation on Excise Tax" came into effect on September 1, 2024. This law granted the Cabinet of Ministers three months to consider the introduction of a reducing coefficient of 0.5 for the excise tax rates on heavy distillates (diesel) intended for use by agricultural producers.
"Three months have already passed since the enactment of Law No. 3878-IX, yet the corresponding directive has not been fulfilled. The Ministry of Economy, Ministry of Digital Transformation, Ministry of Justice, State Tax Service, and State Customs Service are tasked with taking the necessary measures by November 11, 2024, after which they must inform the Verkhovna Rada and the Cabinet of Ministers and submit the relevant draft act for the government's consideration," the statement noted.
The association highlighted that, according to the law, the excise tax on fuel will gradually increase from EUR 139 to EUR 330 per 1,000 liters by the end of 2028, which places Ukrainian farmers at a competitive disadvantage.
VAR has called on the Cabinet to adhere to the legal norms and urgently fulfill its obligations to agricultural producers by introducing a reducing coefficient for the fuel excise tax.