On 75^th anniversary of deportation

--Draft resolution No.8603

The parliament passed the resolution “On commemoration of the 75^th anniversary of commencement of the 1944-1951 deportation of Ukrainians from the Lemkivshchyna, Nadsiannia, Kholmshchyna, South Pidliashshia, Liubachivshchyna, West Boikivshchyna regions at governmental level”.

The paper injoins to hold countrywide memorables, sets the Deportation memorial day to be every second Sunday of September, recommends the president of Ukraine to proclaim 2019 as a year of remembrance of deported Ukrainians, and instructs the Cabinet to arrange and provide for the memorables in 2019.

On contiguous zone

--Draft bill No.8361

On the first reading, there has been validated the bill “On contiguous zone of Ukraine”.

The bill suggests establishing the status and defining the legal regime of the contiguous zone of Ukraine, as well as the procedure for exercising there the rights of Ukraine as a coastal state under its constitution, rules of international law, international treaties and laws of Ukraine. Delimitation of the zone is to be conducted pursuant to the rules of international law and international treaties of Ukraine. The bill is to frame Ukraine’s rights in the zone. Through its authorities in charge, Ukraine administers control and justice needful for:

prevention of violation of customs, fiscal, immigration and sanitary rules within the territory of Ukraine, including its internal sea waters and territorial sea, established by laws and other regulatory acts of Ukraine;

punishment for violation of the said rules committed within Ukraine, including its internal sea waters and territorial sea as well as within the contiguous zone as set forth by this law.

The bill also proposes to amend the laws of Ukraine "On the protection of the cultural heritage of Ukraine", "On the State Border Guard Service of Ukraine", "On the protection of the archaeological heritage of Ukraine".

Adoption of the bill shall contribute to expansion of the territory under control by twelve nautical miles, significantly cut the Black Sea trafficking, avert illegal border crossing, improve the security situation in the region and ensure Ukraine’s economic sovereignty.

On excise tax for light vehicles

--Draft law No.8487

The Verkhovna Rada of Ukraine (VRU) passed the law of Ukraine “On amendments to the Customs Code of Ukraine with regard to excise tax assessment of light vehicles”.

The law triggers a new model of excise tax assessment of light vehicles. For vehicles (under product item 8703 90 10 10) powered entirely by electricity (single- or multi engine ones), the tax rate is set at EUR 1 per 1 kWh; for 8703 10 18 00, 8703 90 10 90, 8703 90 90 00 – EUR 100 per item.

A new Article 20 in the Chapter XX of the “Transitional provisions” stipulates that there will be introduced a special temporary factor 0.5 to the tax rate for vehicles listed in the sub-clause 215.3.51 of the clause 215.3 of the Article 215 of the Code (save the vehicles specified under the product sub-items 8703 10 18 00, 8703 90 10 10, 8703 90 10 90, 8703 90 90 00). This factor is to become 0.75 for the same items not later than 90 days from this draft law’s effective date.

The factors established by this article are to apply to used light vehicles imported into Ukraine’s customs territory for personal use on the basis of one vehicle per person importer.

The subchapter 10 is supplemented with a new Article 49.

The law harmonizes terminology used both in the Tax Code of Ukraine and in the law of Ukraine “On National Police”.

On better administration and new rates for certain taxes and duties

--Draft bill No.9260

There was carried on the first reading the bill “On amendments to the Tax Code of Ukraine and some other legal enactments with regard to management improvement and revision of rates for certain taxes and duties”.

The bill provides for:

• a rise of excise tax for tobacco products by 9 per cent starting from July 1, 2019;

• charge on land for unassessed plots not exceeding 0,1 per cent; permission for local councils to establish special land tax rates for forest lands;

• all backlog decisions made by the State Fiscal Service of Ukraine (SFS) are to be immediately communicated to the finance ministry regardless of amount;

• a sharp hike in green tax rate for stationary sources’ CO2 emissions up to UAH 10 per ton starting from January 1, 2019, with stepwise upping the rate to UAH 30/ton by 2023;

• a rise of petroleum and gas condensate royalty by 2 per cent and 0.8 per cent – for iron ore;

• a hike in land rent for special-use forests by fifty per cent;

• a range of novations in administering the SEARP fuel sales system;

• total licensing of business entities engaged in production, storage, wholesaling and retailing fuel;

• launching a system of control over intended use of aviation fuel, establishing responsibility for the fuel misuse;

• assigning within the SEARP system a special cabinet for record keeping of travel of spirit;

• a zero excise for ethanol used for production of deluted acetic acid (vinegar), perfume and toiletry goods, and techware (non-consumer goods);

• ensuring all-round control over intended use of spirit through specified technical requirements to entities which obtain spirit at a zero excise rate, combined with daily reporting to inspection bodies;

• above mentioned changes in administering of fuel and spirit excises become effective from July 1, 2019, while the responsibility – from October 1, 2019;

• as fiscal agents are now regarded to be postal operators and express-delivery services considered liable from now on for VAT-related payments up to the state budget for goods that enter Ukraine’s customs territory in international parcels, express deliveries or unaccompanied baggage.

The presiding officer closed the meeting.