The entry into force of the tax law led to the suspension of production of lubricants and engine oils from excise duty on raw materials.
Last week, the domestic manufacturers of lubricants and machine oils said to stop activities since the entry into force of law No. 466-IX. In the updated tax code code 27 10 19 99 00 according to which in Ukraine are imported base oil – the main raw material for production in the industry, got into the classifier corresponding to the liquid fuel based on gas oils (diesel oil), and thus became excisable.
The company considered making the code a technical error and saying about the risk of extinction of the industry, urged the authorities to fix it as soon as possible, and until that moment to submit suggestions to the officials of Customs administration of import of oil.
Comments for UBR.ua the head of the tax Committee of the Verkhovna Rada Danil Getmantsev, one of the authors of the bill, refuted the fallacy of edits, explaining that she was introduced to combat illegal diesel fuel, which is imported to Ukraine under code 27 10 19 99 00. However, the excise duty was not to extend to the base oil, and the fact that the customs raw materials all the same levied a fee, the Deputy explained by the disorganization in the work of the different branches of government. To fix the problem he promised in the near future.
“We today (Monday, June 1 – Ed.) already held a meeting with customs tax at the level of experts of the Committee, and I think we have this issue today-tomorrow will remove“, – assured Getmantsev.
However, two days after the meeting of the Committee of experts with the tax and customs to allow import of base oils by the old rules was not restored, and the company that tried to import the raw material by the old rules, the customs were stopped.
“Introduced the excise tax has not been canceled, “- said UBR.ua the press service of the “AZMOL-British Petrochemicals”.
“According to information from representatives of the Ukrainian lubricants industry, one of the Ukrainian manufacturers of lubricants today, 03.06.2020 G., tried to import base oil under the old rules, but he failed. And even if it were possible, the Tax office could impose a fine for possession, manufacture and sale of excisable goods. We don’t know whether any clarification of the Customs and Tax services. Judging by what is happening – not received“, – stated in the press service of Ukraine’s largest manufacturer of lubricating oils.
Due to the current situation, “AZMOL” was forced to stop its plant in Berdyansk. The company expressed confidence that, contrary to the opinion of the members of the tax Committee of the Verkhovna Rada, the preservation of changes in the tax code will lead to the elimination of all domestic production of oils.
“If in the near future to the Law 466-IX will not be amended, repealing the excise tax imposed under code 27 10 19 99 00 lubricant industry in Ukraine will disappear as such. Today, with the introduction of the excise tax, the largest Ukrainian company for the production of lubricants AZMOL BP completely stopped. And in those conditions that have created the Verkhovna Rada and President of Ukraine, having signed the Law 466 – IX, prospects for recovery no work“, – concluded the press-service of the company.
We will remind, on Friday, may 28, “Sassa mode” together with other market participants issued an appeal to the President and the government with the request to affect the problem. Due to excise tax motor oil and more than 100 kinds of products, made from base oil, was not only unprofitable to produce because of the maximum excise rate in 213,5 1 Euro per thousand litres for raw materials, but for most companies, and illegal storage and sale of excisable goods is only permitted subject to compliance with certain requirements, including the excise warehouse equipment, which maslenici not correspond to and cannot implement these standards in their work in less than six months.