Date: 2 months ago   Category: Economy

Excises on alcohol next year won't raise


Excises on alcohol next year won't raise
In 2019 it isn't planned to change excises for alcohol, and the business community welcomes this decision. Business of Association concerning acceptance by the Verkhovna Rada in the first reading of the bill No. 9260 of increase in an excise tax on tobacco products and some other excises and also about reduction of the threshold of tax-exempt transfers for natural persons is said about it in the statement European.

B excises on alcoholic beverage products have been increased 2017 by 20%. However, it hasn't provided additional receipts in the state budget as it was supposed, but also has led to their reduction.

So, receipt volumes in the budget from the made and realized in Ukraine vodka and alcoholic beverage products have made in 2017 6,246 billion UAH in comparison with 6,405 billion UAH in 2016.

During the period from 2014 to 2017 a rate of an excise tax has grown by 125% - from 56,42 UAH for 1 l of 100% alcohol up to 126,96 UAH for 1 l of 100% alcohol. At the same time, receipts have grown by only 14% - from 5,491 billion UAH at the same time the share of the illegal market of alcoholic products continues to increase to 6,246 billion UAH

. And the next growth of rates of an excise tax would promote this process.

So, by estimates of Civil service of statistics, already more than 50% of strong alcohol (vodka, cognac, etc.) in our market are illegal. From one bottle of vodka illegal immigrants earn in 100 times more today, than official producer of the Ukrainian alcohol. Legal business sustains serious losses from it.

at the same time quality of illegal alcohol often doesn't conform even to the minimum requirements of food safety. According to physicians, annually more than 10 thousand people appear in hospital because of low-quality alcohol.

"Producers and importers of alcohol welcome this decision of the Verkhovna Rada and hope for final adoption of the document without modification at the rates on alcohol. It will allow transparent producers to slow down production falling. And the country, in general, to take a step in the direction of settlement the situation with illegal alcohol in the market", - I summarized EBA. we Will remind

, the bill provides to increase, in particular, since July 1, 2019 rates of an excise tax on tobacco products by 9%.

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