Page 35 - UKRRptOct22

tax legislation implemented for the period of martial law. At the time of suspension, the rates were differentiated: gasoline was €213.5, diesel €139.5, autogas €52. The new rates are: gasoline, diesel, and biofuel - €100 each, gas - €52. The Ministry of Defense will be able to purchase fuel for its needs without any excise tax. The value-added tax for these types of fuel remains at 7%. The new rates will be in effect until the end of martial law, but no later than July 1, 2023. After that, the VAT rate will return to the 20% level that was in effect before the introduction the new rates in March and excise taxes will return to pre-war levels.
Since the beginning of the war, as military spending surged by 4.5 times, Kyiv has struggled to slash non-military spending.
Non-essential current expenditures have been cut 78% YoY. Far from engaging in large-scale reconstruction, capital spending has been cut back by 61% YoY. But there is a limit to how far austerity can be carried in wartime. Between March and May, Ukraine’s public spending on wages and salaries surged, including for emergency medical personnel and first responders.
35 UKRAINE Country Report October 2022 www.intellinews.com