“What is wrong with the initiative to increase taxes on gas stations, regardless of profitability?”, — write: www.epravda.com.ua
In recent days, the changes to the Tax Code adopted in the first reading have become widely publicized introduction of income tax advance payments for gas stations from October 1, 2024.
You will have to pay up to 80,000 hryvnias per gas station per month.
My position regarding the negative impact of this decision on the activities of small chains and individual gas stations in small towns and villages also caused mixed reactions from various experts.
Therefore, I will once again explain the content of my posts.
1. Advance payment of income tax on the gas station facility distorts the economic essence income tax – a tax that taxes a positive financial result (profit), not a gas station. For another, there is a licensing tool for each gas station.
2. The increased amount of the advance payment by 20,000 hryvnias per month for gas stations that still sell alcoholic beverages and tobacco products is surcharge for non-core activities of gas stations.
That’s a lot A DANGEROUS trend: yesterday it was introduced for exchangers, today for gas stations, and tomorrow the authorities may introduce a similar contribution for all retail chains and stores that sell alcohol and tobacco.
3. Not all gas stations are profitable. Up to 15% of the number of gas stations even in the largest chains are unprofitable (up to 25% in medium players, up to 50% in small chains). The losses of such gas stations are covered by the revenues of more profitable gas stations, and the refusal to sell unprofitable gas stations is explained by corporate, social and image factors.
4. There will be an increase in taxes redistribution of the market in favor of large networkswhich have higher profitability due to their own fuel imports, significant volumes of fuel storage tanks, their own vehicle fleet for fuel transportation and a significant (up to 10 hryvnias) margin per 1 liter of fuel.
Even one of the chains with a world name, Shell, openly announced future losses from the introduction of advance payments.
5. The introduction of advance payments was presented by the Ministry of Finance as temporary a measure agreed with the main players of the fuel market to ensure budget spending on security and defense. However, such norms are introduced in the project FOREVER.
On the other hand, the government CANNOT (read – DOESN’T want to) organize effective administration of the full payment of taxes on the fuel marketalthough it has all the tools for this in its arsenal – licensing, electronic fuel accounting devices, PRO, excise and tax invoices, SMKOR, inspections.
I am not talking about the inactivity of all controlling and law enforcement agencies (because when they want, they can).
The time of simple solutions has long passed. Today it harms our state.