Alcohol and tobacco will be more expensive

Based on the bill # 3757, price on alcohol will increase by 14 %, price on beer will increase by 35 %, on cigarettes - by 11.6 %. The author of the draft is MP of the Verkhovna Rada of Ukraine Vitaliy Khomutynnyk.

Director of corporate Affairs of the company Efes Ukraine Valentin Boynitsky considered excise duties increase on alcoholic beverages as an unreasonable phenomenon. «At the same time increase in excise tax of 35 % is not as disastrous for the industry, as an increase of 200%», says Boynitsky. First in the Parliament the raise of the price by 200 % was considered. In such a case, the budget would increase with 5 - 6 billion hryvnias per year and the price increase on alcohol will result in a consumption decrease. The Ministry of health announced, in 2013 12 thousand people died of alcohol poisoning, psychoses and cirrhosis. «Increase of the prices on beer and vodka and cigaretts should reduce mortality rate in Ukraine», said the Head of the Department of strategic research of the Ukraine’s Ministry of health Konstantin Krasovsky.

According to the calculations of the General Director of Global Spirits Sergey Velichko, the increase in excise by 14 % would lead to a price rise of vodka by UAH 3. 35 % will appear the price rise on beer by UAH 2.5, the Executive Director of the Association «Ukrpivo» Igor Tovkach states. For comparison, in Russia the excise tax on beer in terms of the Ukrainian currency is UAH 3.83 , in Belarus - UAH 2.7.

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