Fuel Tax Cuts Rejected by Ukraine’s Government as Revenue Goes to Military.

VAT and Excise Duties on Fuel Remain Unchanged

According to Novyny.live: Ukraine’s Cabinet of Ministers has decided against reducing value-added tax (VAT) and excise duties on fuel, citing these levies as a critical funding source for the armed forces. Prime Minister Yuliia Svyrydenko made the announcement during a government Q&A session on March 13. She emphasized that all taxes and fees flow into the state budget’s revenue pool, which directly supports military expenditures. This stance comes as Ukraine continues to rely on domestic revenue to sustain its defense efforts amid the ongoing war.

“No, we have no plans to lower either VAT or the excise tax. Let me remind everyone that all taxes and duties go into the budget’s revenue side, which finances the army.”

Yuliia Svyrydenko

Fuel Prices on the Rise

Fuel costs in Ukraine continue to climb. Autogas is approaching 42 hryvnias per liter, while diesel prices range from 70.95 to 77.99 hryvnias per liter. In response, the government has prepared a support package to offset the impact of rising fuel prices. Svyrydenko also stressed the need for cities and regions to prepare for the upcoming winter:

“It is critically important for us that every city and region is ready for the next winter.”

Yuliia Svyrydenko

As fuel prices increase, the Ukrainian government is taking steps to assist the population while maintaining current tax rates that are vital for military funding. This approach may spark discontent among consumers, but officials underscore the necessity of financial support for the defense sector given the country’s current circumstances. A key question remains: how the government will implement its support package for citizens affected by higher fuel costs, while also ensuring regions are winter-ready.