Rada taxation committee excludes norm on excise duty for RES from 'resource' bill No. 5600 – first deputy head

KYIV. Sept 20 (Interfax-Ukraine) – The Verkhovna Rada of Ukraine Committee on Finance, Taxation and Customs Policy has excluded from government "resource" bill No. 5600 the norm on excise tax on electricity produced by renewable energy sources (RES), first deputy head of the committee Yaroslav Zhelezniak said.

"The norm on the excise duty for green energy was removed from bill No. 5600. The committee supported almost unanimously," Zhelezniak wrote on his Facebook page.

The head of the Ukrainian Wind Energy Association, Andriy Konechenkov, has recently told Energy Reform that RES generation is not ready for any compromises on the introduction of excise tax and will categorically insist that such a norm should not be adopted.

As reported, in early July, the Verkhovna Rada adopted as a basis government "resource" bill No. 5600 with amendments to the Tax Code, which proposes, in particular, the introduction of excise duty for electricity from renewable energy sources (3.2%).

The introduction of excise tax on green electricity was called a violation of the legislation on support of renewable energy generation in the Secretariat of the Energy Community, the European Bank for Reconstruction and Development, as well as a number of other international financial institutions.

The bill was also criticized, in particular, by the European Business Association, the American Chamber of Commerce in Ukraine.