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The draft law provides for a 9% increase in the excise tax rate on tobacco products from July 1, 2019.
The Verkhovna Rada, Ukraine's parliament, has passed bill No. 9260 on amendments to the Tax Code and other legislative acts that clarify the administration procedure, as well as increase the rates of a number of taxes and fees to balance the national budget.
The document was backed in the second reading and as a whole by 236 MPs with the required minimum of 226 votes, an UNIAN correspondent reported on November 23.
Read alsoExcise tax on tobacco to increase by 9% from July 2019
According to the explanatory note, the law provides for an increase in the excise tax rate on tobacco products by 9%, or by a projected inflation rate, from July 1, 2019.
The draft law also stipulates an increase from January 1, 2019, in the environmental tax rate for carbon dioxide emissions caused by stationary sources from UAH 0.41 to UAH 10 per tonne and its gradual increase to UAH 30 per tonne until 2023.
In addition, it is planned to increase royalties for the use of subsoil for crude oil and condensate production by 2 percentage points (pp), for iron ore by 0.8 pp, and for special use of forest resources by 50%.
The draft law also introduces value-added taxation on parcels delivered to Ukraine with a total value exceeding the equivalent of EUR 100 for one recipient from one sender. The transitional period from January 1 to June 30, 2019 is set for this norm, during which taxation is applicable only when the value of goods exceeds EUR 150.
"According to Ukraine's Finance Ministry, the adoption of the bill will boost the consolidated budget's revenue (in the conditions of 2019) by UAH 6.3 billion [US$226.9 million], including that of the national budget by UAH 5.9 billion [$212.5 million]," the explanatory note said.