In the Ukrainian state, alcohol prices are expected to rise, since the increase in the cost of strong drinks is explained not only by the increase in the costs of their production, but also an increase in the excise tax on this kind of drinks.
Experts reported this information for the Focus publication, reports URA-Inform.
According to experts, if production costs can be controlled to some extent thanks to competent management, then excise taxes are a category that does not depend either on manufacturers or even, by and large, on the Ukrainian authorities.
They claim that if Ukraine strives to join Europe, then, accordingly, it must accept all European “rules of the game.” Even if they seriously hit the pockets of ordinary Ukrainians. Accession to the European Union will not be possible without new excise taxes, since the country seeks to join the European Union, the alcohol market must be harmonized with the European market.
“This means that excise tax rates on alcohol should correspond to the level established in Europe. In this regard, on March 22, the government approved a bill that provides for an increase in the excise tax rate for intermediate products from 8.42 to 12.23 hryvnia per liter. This excise tax rate currently applies to sparkling and carbonated wines. Thus, due to the increase in the excise tax, the price of a bottle of wine will increase by approximately 3 hryvnia,” — it said.
Experts say all of the above may seem insignificant, but it's just the beginning. The excise tax rates will gradually increase, since in Europe the minimum excise tax on wine is 45 euros per hectoliter. This is equivalent to 18.9 hryvnia per liter at the current euro exchange rate.
Given that the euro exchange rate is likely to rise, all excise rates in Ukraine will be tied to the value of the European currency. However, increasing the excise tax is only one side of the coin. The cost of alcohol depends not only on the excise tax, but also on the costs of its production. And these costs are constantly growing due to an increase in energy prices, logistics costs, the cost of raw materials, consumables and wages of industry employees.
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