Decision concerns the constitutionality of a provision in the Tax Code of Ukraine regarding excise tax on retail fuel sales, which was in effect from January 1, 2015. Structurally, the decision consists of three main parts: 1) description of case circumstances and parties’ positions; 2) analysis of the contested norm’s compliance with the principles of rule of law and legal certainty; 3) conclusions regarding violation of constitutional rights of economic entities.
Key provisions of the decision:
• The Constitutional Court of Ukraine found the provision of the Tax Code on excise tax for retail fuel sales unconstitutional due to violation of the principle of tax legislation stability
• The law effectively came into force the day after publication, without providing a reasonable transition period for business adaptation
• Absence of a transition period and comprehensive regulation of accounting procedures violated the rights of economic entities and the principle of legal certainty
• Such changes created excessive tax burden, especially on small and medium-sized businesses, which violated the principle of competition protection
