Excise tax on fuel should remain in local budgets, - AUC

On 4 October, in the Verkhovna Rada of Ukraine, a group of the Parliament members registered the draft Law of Ukraine "On making amendments to the Budget Code of Ukraine (concerning the transfer of the excise tax from produced in Ukraine fuel and of part of the excise tax on imported to the customs territory of Ukraine fuel to the local budgets in 2020 (No. 2231)” that was developed by the Association of Ukrainian Cities.

According to this draft law, a part of the excise tax on fuel will be credited to the local budgets in 2020.

If this draft law is not adopted, the AUC estimates that hromadas will lose from UAH 7.7 billion annually from 2020, which will significantly weaken them. First and foremost, small cities and AHs will be affected a lot. Loss of capacity for hromadas means a complete rollback of decentralisation, the AUC believes.

The Association of Ukrainian Cities urged the authorities of local governments to appeal to the members of the Ukrainian Parliament and local deputies, as well as to the Ministry of Finance of Ukraine concerning support of the draft law No. 2231.

It is worth mentioning that within the framework of budget decentralisation, a few years ago, the excise tax on fuel was credited to the budgets of the hromadas. Local excise tax on fuel is not only a tool of struggle with shadowing in the field of fuel realisation (which was 30 % before its implementation, but also a source of hromadas revenues to implement social projects, such as construction of new schools and kindergartens, repair of roads, bridges, improvement of streets, etc. This resource is very important for local governments, as the excise tax on fuel brings to 50% of revenues in local budgets of some hromadas.

But the current Budget Code of Ukraine stipulates that from 2020 the excise tax on fuel will not be credited to budgets of hromadas.

 

07.10.2019 - 09:35 | Views: 4961
Excise tax on fuel should remain in local budgets, - AUC

Tags:

excise tax AUC

Source:

Асоціація міст України

Share the news:

Коментарі:

To add comment you should be authorized or sign_in
Read more:

19 January 2021

January, 21- presentation of the CANactions School SPACES programme outcomes

January, 21- presentation of the CANactions...

On January, 21, 2020, at 19:00 there will be online presentation of the CANactions School SPACES educational...

18 January 2021

96% of local budgets have been approved – data by the Ministry of Finances

96% of local budgets have been approved – data...

As of January, 18, 2021, the Ministry of Finances possesses information concerning the approval of 1537 budgets,...

18 January 2021

79% of social facilities have been transferred to the hromada communal ownership – data by the MinRegion

79% of social facilities have been transferred...

The process of transferring property from the rayon level to the hromada communal ownership is underway. In total,...

18 January 2021

The Role of Local Government Associations

The Role of Local Government Associations

This article aims to outline some common characteristics of Local Government Associations (LGAs) and their role in...

18 January 2021

Two hromadas of the Kherson region have concluded tourism development cooperation agreements

Two hromadas of the Kherson region have...

Kalanchatska and Tyahynska territorial hromadas (the Kherson region) will cooperate within the project «Developing...