The Resolution Determining a New Mechanism for Paying a Portion of Excise Tax to Local Budgets Became Effective

13.44 % of the excise tax on produced and imported fuel will be paid to local budgets.

The resolution of the Cabinet of Ministers of Ukraine "Some Matters Pertaining to the Payment of a Portion of Excise Tax on Fuel Produced in Ukraine and Imported into the Customs Territory of Ukraine to Local Budgets" (Resolution No. 96, dated 8 February 2017). The document is published on the Government Portal.

The Resolution provides that 13.44 % of the excise tax imposed on the produced and imported fuel will be paid to local budgets. In addition, the document determines that the allocation of a portion of the excise tax on fuel among local budgets in accordance with the percentages intended to be paid to local budgets will be carried out on a daily basis.

Such mechanism of distribution of the said excise tax, as it was clarified by the Ministry of Finance, will encourage reporting real salaries and improve the efficiency of paying the excise tax, as well as ensure steady revenues for local budgets.

Earlier, Prime Minister of Ukraine Volodymyr Groysman said, that the Government would make efforts so that the amount of excise taxes to be channelled to local budgets after the change of the system of payment thereof was higher than in 2016.

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