Wine and Spirits
The European Business Association (The Association) is pleased to inform that our proposals on revision of the increase of excise tax rates, in particular for strong alcoholic beverages and the preservation of the current excise tax rates in order to stabilize the industry in 2018, were taken into account in the Draft Law No. 6776-д on amendments to the Tax Code of Ukraine regarding the balance of budget revenues in 2018 (Draft Law) that was adopted by the Verkhovna Rada on November 14 in the first reading.
According to the explanatory note to the Draft Law, the Draft Law No. 6776 proposals on increasing the rates of excise tax on ethyl alcohol and other alcohol distillates, alcoholic beverages, and beer were not included in the revised the Draft Law due to the significant increase of these rates in 2012-2016, which significantly exceeded the consumer price index over the years, the negative effects of such increase, and the lack of a tendency to increase budget revenues depending on the increase of excise tax rates.
The Association welcomes the decision and hopes that the Draft Law will be adopted in whole in the said wording.