The government has adopted a draft law that provides for the introduction of advance tax payments for gas stations. Gas station owners must pay 30,000, 45,000 or 60,000 hryvnias per month, depending on the type of fuel and related services. This step is explained by the need to replenish the budget during martial law. However, the business community, especially representatives of small and medium-sized businesses (SMEs), emphasize significant risks.
Gas stations are already an important source of tax revenue. According to the State Tax Service, in 2023, the industry provided more than UAH 60 billion in excise taxes, of which a significant share was paid by regional networks. The average tax per station varies depending on sales volume and additional upfront payments can become critical for many operators.
How will advance tax affect business?
- The threat of closing small gas stations.
Industry experts predict that about 2,000 gas stations, mostly in remote regions, may cease operations due to excessive tax burdens. These stations operate at a low margin, selling mostly liquefied gas. Advance payments that do not take into account real revenues create an imbalance, forcing operators to stop operations.
- The growth of the shadow market.
A high workload may encourage some operators to go “into the shadows”. According to estimates of the Institute of Socio-Economic Research, in 2023 the shadow segment in the fuel market was about 20%. The introduction of fixed advance taxes risks increasing this indicator in 2025, which will reduce market transparency and budget revenues.
Economic consequences
- Reduction of tax revenues
Closing small gas stations will lead to loss of taxes for local budgets. According to a study by the Center for Economic Recovery, even if the large operators partially compensate for the losses, the reduction of taxpayers in the regions will be a significant blow to the economy.
- Increase in fuel prices
Additional business costs caused by upfront taxes are likely to be passed on to the end consumer. This will affect the cost of fuel and worsen the purchasing power of the population, especially in remote regions.
Impact on infrastructure
- Loss of service availability
The closure of small stations can lead to logistical problems in rural areas, where there is often only one service station. This will affect not only the supply of fuel, but also access to essential goods, which are often sold through these stations.
- Imbalance of regional development
It is economically unprofitable for large networks to develop infrastructure in remote areas. This will lead to further centralization of the market, reduced competition and dependence on large operators.
Opinion of the “Fuel and Energy Business” Association
The association notes that the introduction of advance tax in its current format contradicts the principles of equality and transparency. Fixed amounts create an additional burden for small and regional operators, which provide up to 40% of fuel supply in Ukraine.
Tetyana Dumenkova (deputy head of the association) considers it fair:
– Introduce differentiated tax rates, depending on sales volume and regional location.
– Provide state support for small gas stations in the form of tax benefits or subsidies for companies whose stations operate in remote settlements.
– Strengthen control over market transparency, in particular regarding the avoidance of illegal transactions.
Support of SMEs is a guarantee of sustainable development of local infrastructure and economy of Ukraine. In the conditions of war, it is important not only to fill the budget, but also to ensure economic stability, save jobs and access to services in the regions.
