Business calls on MPs not to support the amendment on withdrawal of old-style excise tax stamps from circulation

05/ 02/ 2024

Listen to online Stop   Despite business concerns, on February 1, 2024, at a meeting of the Verkhovna Rada Committee on Finance, Taxation, and Customs Policy, it was decided to recommend that the Verkhovna Rada adopt Draft Law No. 9662 as a whole, taking into account amendment No. 161, which proposes to withdraw old-style excise stamps from circulation, as well as excisable products marked with them. A few days earlier, the business had already voiced its position against the idea of withdrawing old excise tax stamps from circulation. In particular, according to the EBA experts, such a requirement will result in additional unjustified losses for legal producers, importers, and retailers, amounting to at least tens of billions of hryvnias. At the same time, this measure will not have a positive impact on the fight against counterfeit excise stamps. Under the current legislation, in case of a change in the design of excise tax stamps, the previously purchased stamps of the previous design are used in the production of alcoholic beverages and tobacco products until they are fully used, and the products labeled with them are in circulation until they are fully sold within the shelf life. Therefore, businesses rely on this rule when putting excisable products into circulation, which ensures the predictability of economic activity. Given this, the EBA categorically does not support the above amendment to withdraw old excise tax stamps from circulation, including those that are already used to label excisable goods. The EBA appeals to the heads of the parliamentary factions in the Verkhovna Rada and asks them to initiate the exclusion of amendment No. 161 during the second reading of the draft Law No. 9662. We urge MPs to listen to the position of responsible business!

Despite business concerns, on February 1, 2024, at a meeting of the Verkhovna Rada Committee on Finance, Taxation, and Customs Policy, it was decided to recommend that the Verkhovna Rada adopt Draft Law No. 9662 as a whole, taking into account amendment No. 161, which proposes to withdraw old-style excise stamps from circulation, as well as excisable products marked with them.

A few days earlier, the business had already voiced its position against the idea of withdrawing old excise tax stamps from circulation. In particular, according to the EBA experts, such a requirement will result in additional unjustified losses for legal producers, importers, and retailers, amounting to at least tens of billions of hryvnias. At the same time, this measure will not have a positive impact on the fight against counterfeit excise stamps.

Under the current legislation, in case of a change in the design of excise tax stamps, the previously purchased stamps of the previous design are used in the production of alcoholic beverages and tobacco products until they are fully used, and the products labeled with them are in circulation until they are fully sold within the shelf life. Therefore, businesses rely on this rule when putting excisable products into circulation, which ensures the predictability of economic activity.

Given this, the EBA categorically does not support the above amendment to withdraw old excise tax stamps from circulation, including those that are already used to label excisable goods. The EBA appeals to the heads of the parliamentary factions in the Verkhovna Rada and asks them to initiate the exclusion of amendment No. 161 during the second reading of the draft Law No. 9662.

We urge MPs to listen to the position of responsible business!