Business was presented with the pilot of the electronic excise stamp

15/ 06/ 2021

Today, the Ministry of Digital Transformation of Ukraine and the State Tax Service of Ukraine with the support of the USAID / UK aid project Transparency and Accountability in Public Administration and Services / TAPAS presented a pilot project Electronic Excise Stamp to EBA representatives. The EBA Wine and Spirits Committee stated that the business supports in the long term the idea of abolishing excise tax stamps for alcoholic beverages as they are now, as well as simplifying or digitalizing excise tax stamps which will certainly ease the administration of these processes. It was emphasized that the business is categorically opposed to the introduction of any tools aimed at accounting for each individual bottle of alcohol at all stages of the movement of goods. After all, tracking the supply chain of each bottle, considering the volume of deliveries of companies will require significant additional resources - human, technical, and financial. Moreover, it will also cause significant risks of possible human error. The business draws special attention to the need for a transitional period to implement changes related to the excise tax mark, as required by applicable law (not earlier than 24 months after the entry into force of the relevant changes). It is also necessary to take into account the need to keep in circulation the goods with a long and unlimited shelf life with old stamps before the purchase of such goods by the final consumer. At the same time, the business has many questions and comments about the details of this pilot and its associated additional financial costs (the stamp format, method, and place of application on the bottle, the need for new equipment for sticking or reading codes, the cost of codes generation and packing information into them, instructions in case of a damaged bottle or stamp that cannot be scanned, etc.), and which require further discussion. Thus, the business will form a final attitude to the pilot project depending on the answers to these questions. Supporting the desire to impose order to the market, the participants agreed on further cooperation in developing a mechanism that would help solve existing problems in the market, without creating additional burdens and difficulties for legal producers and importers of alcoholic beverages. For reference: The project aims to systematize the control over the circulation of excisable goods, simplify the process of obtaining excise stamps for producers and importers, as well as increase state budget revenues by de-shadowing the market of excisable products.

Today, the Ministry of Digital Transformation of Ukraine and the State Tax Service of Ukraine with the support of the USAID / UK aid project “Transparency and Accountability in Public Administration and Services / TAPAS” presented a pilot project “Electronic Excise Stamp” to EBA representatives.

The EBA Wine and Spirits Committee stated that the business supports in the long term the idea of abolishing excise tax stamps for alcoholic beverages as they are now, as well as simplifying or digitalizing excise tax stamps which will certainly ease the administration of these processes.

It was emphasized that the business is categorically opposed to the introduction of any tools aimed at accounting for each individual bottle of alcohol at all stages of the movement of goods. After all, tracking the supply chain of each bottle, considering the volume of deliveries of companies will require significant additional resources – human, technical, and financial. Moreover, it will also cause significant risks of possible human error.

The business draws special attention to the need for a transitional period to implement changes related to the excise tax mark, as required by applicable law (not earlier than 24 months after the entry into force of the relevant changes). It is also necessary to take into account the need to keep in circulation the goods with a long and unlimited shelf life with old stamps before the purchase of such goods by the final consumer.

At the same time, the business has many questions and comments about the details of this pilot and its associated additional financial costs (the stamp format, method, and place of application on the bottle, the need for new equipment for sticking or reading codes, the cost of codes generation and packing information into them, instructions in case of a damaged bottle or stamp that cannot be scanned, etc.), and which require further discussion. Thus, the business will form a final attitude to the pilot project depending on the answers to these questions.

Supporting the desire to impose order to the market, the participants agreed on further cooperation in developing a mechanism that would help solve existing problems in the market, without creating additional burdens and difficulties for legal producers and importers of alcoholic beverages.

For reference:

The project aims to systematize the control over the circulation of excisable goods, simplify the process of obtaining excise stamps for producers and importers, as well as increase state budget revenues by de-shadowing the market of excisable products.