National bank of Ukraine’s official rates as of 02/03/21
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of March 02
One troy ounce=31.10 grams
An increase in the excise tax on heated tobacco products by 200% from April 1 this year and its further growth by 30% (up to 320% in total) in 2022-2025 – such a compromise solution will allow avoiding too sharp price jumps and will provide more tax revenues than the alternative “shock” scenario, according to the Ukrainian League of Industrialists and Entrepreneurs (ULIE).
As reported on the union’s website on Monday, the business supports relevant bill No. 4278, which provides for such a procedure for increasing the excise tax. At the same time, the organization believes that this approach, among other things, will save jobs in companies, and the legal market, without reducing tax revenues to the budgets of various levels.
According to the business league, the Verkhovna Rada Committee on Finance, Tax and Customs Policy, when considering bill No. 4278, supported an increase in the excise tax on heated tobacco products by 200% in 2021 and a subsequent annual increase by 30% in 2022-2025.
The ULIE referred in a press release to the data of the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine, according to which a gradual increase in excise tax rates on heated tobacco products within five years will provide UAH 18.7 billion more tax revenues than the alternative “shock” scenario with an increase in excise tax immediately in 4.2 times this year.
At the same time, the ULIE clarified that under the model of a gradual increase in excise tax, Philip Morris Ukraine tobacco company guaranteed the payment of more than UAH 11 billion of excise tax on heated tobacco products to the state budget of Ukraine during 2021-2022.
The Ukrainian League of Industrialists and Entrepreneurs said that legislative amendments affecting the consumer basket should correlate with the purchasing power of consumers, which will ultimately be affected by the rise in prices for products. “Otherwise, this situation will stimulate smuggling and the illegal sector,” the business league said.
As reported, on January 16, 2020, the Verkhovna Rada adopted law No. 1210, which introduced amendments to the Tax Code of Ukraine, increasing the excise tax rate on heated tobacco products by 4 times from January 1, 2021. Also, a separate product subgroup is introduced for heated tobacco products.
President of the European Council Charles Michel started his visit to Ukraine on Tuesday morning, Head of the EU Delegation to Ukraine Matti Maasikas said.
“The President of the European Council has landed in Kharkiv. Two days in Ukraine: visiting the line of contact, honouring the memory of the victims of Maidan, seeing EU COVID-assistance in practice, discussions with [Volodymyr] Zelensky on reforms and association, participation in Ukraine 30 forum on judicial reform,” Maasikas said on Twitter on Tuesday.
The U.S. Department of Defense announced a new $125 million package for Ukraine’s Security Assistance Initiative that includes training, equipment and advisory efforts to help Ukraine’s forces preserve the country’s territorial integrity, secure its borders, and improve interoperability with NATO.
“The USAI package includes two additional armed Mark VI patrol boats to enhance Ukraine’s capacity to patrol and defend its territorial waters. To date, the U.S. has committed a total of eight Mark VI patrol boats,” the Defense Department said in a press release on Monday.
The Pentagon said that this action reaffirms the U.S. commitment to providing defensive lethal weapons to enable Ukraine to more effectively defend itself against Russian aggression.
“The package also includes capabilities to enhance the lethality, command and control, and situational awareness of Ukraine’s forces through the provision of additional counter-artillery radars and tactical equipment; continued support for a satellite imagery and analysis capability; and equipment to support military medical treatment and combat evacuation procedures,” the department said.
The Pentagon also said that the remaining $150 million in fiscal year 2021 USAI funds appropriated by Congress will be provided when the Defence Department, in coordination with the Department of State certifies that Ukraine has made sufficient progress on key defense reforms this year, as required by the National Defense Authorization Act.
“The Department encourages Ukraine to continue to enact reforms that strengthen civilian control of the military, promote increased transparency and accountability in defense industry and procurement, and modernize its defense sector in other key areas in line with NATO principles and standards,” the Defense Department said.
Since 2014, the United States has committed more than $2 billion in security assistance to Ukraine.
Volumes of cargo transportation in 2020, MLN tons.
