The Verkhovna Rada, Ukraine`s parliament, has adopted a bill as a basis to raise excise duties on alcohol and tobacco and increase rates of some taxes.
In particular, lawmakers passed amendments to the Tax Code, which suggest a number of changes in administering VAT, raising rates of excise duties, environmental tax, royalties, and rates for the use of radio frequencies.
Bill No. 5132 on amendments to the Tax Code of Ukraine to ensure a balanced budget in 2017 was backed by 229 MPs with the required minimum being 226 votes.
Presenting the bill, Ukrainian Finance Minister Oleksandr Danyliuk said that the document is designed to boost budget revenue and balance out receipts and expenditures. It is also tasked to bring Ukrainian laws in line with EU norms and suggests the review of some provisions of the Tax Code in connection with an increase in the minimum wages.
In particular, the minister said, the bill changes administration of VAT, raises excise duties on alcohol and tobacco, and introduces a flat rate for the excise duty on diesel fuel. It also revises rates of environmental tax, royalties and tariffs set for the use of radio frequencies.
The minister called on parliamentarians to vote for the bill.
During debates on the document, head of the Rada`s committee on taxation and customs policy Nina Yuzhanina said that working groups had formulated proposals after the discussion of the bill, and they needed to be incorporated into the wording of the government-prepared bill.
In her words, the committee recommended that the bill be passed as a basis and then prepared for the second reading in accordance with the expedited procedure.
As UNIAN reported earlier, Ukraine`s Cabinet of Ministers on November 9 sent a draft budget for 2017 to the Verkhovna Rada for consideration in second reading.
The budget revenue was set at UAH 721.4 billion, or UAH 15.1 billion up on the figure proposed in the previous draft, while expenses were fixed at UAH 790.4 billion, also UAH 15.1 billion more. The budget deficit was capped at the same level, UAH 77.5 billion. The limit of state debt was also unchanged, being fixed at UAH 2.296 trillion.
The government projects additional revenue from increased allocations by the National Bank of Ukraine from its profit by UAH 4 billion and a rise in dividends by UAH 1.6 billion. An increase in tax receipts is expected at UAH 9.4 billion from the national budget and at UAH 10.9 billion from the local budgets.