The proposal to introduce an advance payment of corporate profit tax for retail fuel traders in government bill No. 11416, which aims to increase taxes, requires further development in the form of additional calculations to determine the size of such a payment, reported Ukraine's Ministry of Finance.

According to their press release, this agreement was reached following a meeting with the Oil and Gas Association of Ukraine and the state-controlled PJSC Ukrnafta.

"Ukraine's Ministry of Finance continues an open and constructive dialogue with representatives of business associations from various sectors of the economy regarding the design of tax changes during martial law," the ministry said.

The Ministry of Finance reported that last week they held meetings with representatives of the Ukrainian Business Council, the Ukrainian Agrarian Council, the Ukrainian Agribusiness Club, the American Chamber of Commerce in Ukraine, the European Business Association, the Jewelers of Ukraine public union and the Union of Jewelers of Ukraine.

The discussions included the participation of representatives of the parliamentary committee on financial, tax, and customs policy. Among other things, the possibility of replacing the 1% turnover tax for businesses with VAT was discussed, and it was noted that all adopted tax changes would only be in effect during martial law.

As reported, bill No. 11416 proposes the monthly payment of advance contributions on corporate profit tax by retail fuel sellers in the amount of 0.5 minimum wages (currently equivalent to UAH 4,000) per cubic meter of fuel storage capacity. According to the Ministry of Finance's calculations, introducing such a procedure from August 1 would bring UAH 8.3 billion to the budget, while all the bill's proposals would total about UAH 125 billion. Meanwhile, the industry claims that such a norm significantly exceeds the current levels of corporate profit tax.