The Tax Service expects 1.2 billion hryvnias from new excise

24 December 2012 12:33  2526856 027432
The Tax Service expects 1.2 billion hryvnias from new excise

New rules for the administration of the excise tax, that will take effect on January 1, 2013, will promote further legalization of the industry and will bring to the budget 1.2 billion hryvnias of tax payments.

This was discussed at the meeting of tobacco companies with specialists of the State Tax Service (STS), during which they agreed with the business upon the most complex issues of the bill and its implementation algorithm.

"Representatives of the tobacco industry were directly involved in the drafting. Their suggestions and comments after a series of joint meetings and communication sessions were processed and included in the final version of the document", - said the press service of the STS.

The Law of Ukraine dd. November 20, 2012 № 5503 "On amendments to the Tax Code of Ukraine regarding revision of certain taxes and fees" includes an advance payment of the excise tax when buying brands as well as increase of the minimum excise tax liability and the specific excise tax rate while reducing the impact of ad valorem component. According to the experts of the Tax Service, the following procedure of excise tax administration will make fraud with retail prices for tobacco products disadvantageous. It also prevents dumping fraud as one of the common methods of unfair competition.

In addition, accountability for violations of the conditions of production, transportation, storage, sale of excisable products has been enhanced. The minimum fine as of January 1, 2013 will be increased from 1700 to 8500 UAH.

The experts of the Tax Service are also working on the introduction of several other innovative procedures in the administration of the excise tax, including electronic tax stamps and declaration of maximum prices for tobacco products in electronic form.

Tags: new excise taxes, tax, taxes

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