№ 2/2021

Fìnansi Ukr. 2021 (2): 113–126https://doi.org/10.33763/finukr2021.02.113

SCIENTIFIC DISCUSSIONS

OSTROVETSKY Vitalii ¹

¹Ministry of Finance of Ukraine
OrcID ID : https://orcid.org/0000-0003-3985-5236

Excise tax on fuel in the system of economic instruments for environmental protection

Energy-related CO2 emissions have reached record levels. Such negative trends require intensification of the use of various instruments, economic in particular, which will reduce the negative impact on the ecology , scientific and technological progress and population growth on the planet Earth. One of the most effective and easiest instruments to apply is the excise tax on fuel. In most EU countries, gasoline is subject to an excise tax at rates that are 20-25% higher than the tax rate on diesel fuel. A similar situation is observed in Ukraine. At the same time, it should be noted that excise tax rates in the EU are 3-4 times higher than the rates applied in Ukraine. The world markets are experiencing a collapse in oil prices, as well as gasoline and diesel fuel. The decline in demand is due to the economic consequences of the COVID-19 distribution flow policy. Domestic and international travel is reduced, business and other forms of socio-economic activity are transferred to remote work via the Internet. However, in Ukraine, retail fuel prices remain at the same level. Consequently, producers make profits by taking advantage of changing supply and demand in the relevant markets. Lower excise tax rates in Ukraine compared to the EU, as well as falling world oil prices provide grounds for a gradual increase in excise tax rates on gasoline and diesel fuel in Ukraine. Every 10 Euro increase in the tax rate, other things being equal, will attract UAH 500-600 million to the budget of additional income, increasing the sale price of fuel by 1%. To this end, it is advisable to develop a schedule of such increase, which should be agreed with the main payers of the excise tax on petroleum products (producers and importers), which should be approved in the form of a memorandum or special agreement.

Keywords:ecology, CO2 emissions, excise tax, gasoline, diesel fuel

JEL: Q5, E62

OSTROVETSKY V. . Excise tax on fuel in the system of economic instruments for environmental protection / V. . OSTROVETSKY // Фінанси України. - 2021. - № 2. - C. 113-126.

Article original in Ukrainian (pp. 113 - 126)

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