One of the key challenges facing the agricultural sector in 2025 is the issue of increasing fuel excise taxes.

The Law “On Amendments to the Tax Code of Ukraine on the Implementation of the Provisions of the European Union Excise Tax Acts”, adopted in September 2024, provided for a reduction in excise rates for farmers in transitional provisions. This applied to producers who use machinery to work in the fields. However, according to Denys Marchuk, Deputy Chairman of the UAC, the government has not yet fulfilled these obligations.

“We find ourselves in a situation where, instead of the promised reduction of the excise tax for farmers, we have a gradual increase. Starting from 2025, the excise tax will increase from 139 to 330 EUR by 2028. This puts Ukrainian agricultural producers at a disadvantage compared to their European counterparts,” said Marchuk.

The increase in fuel excise taxes puts serious pressure on the agricultural sector, which is the base for the Ukrainian economy. Without a reduction in excise rates, agricultural producers will suffer significant financial losses, which may affect production volumes and the ability to export products.

The UAC calls on the Cabinet of Ministers of Ukraine to immediately develop mechanisms to implement the provisions of the law and ensure that the excise tax for farmers is reduced to maintain stability in the sector and support its development in the post-war period.