You're reading: Lawmakers up excise tax on alcohol and cigarettes

The Verkhovna Rada, Ukraine's parliament, has increased excise tax on beer, alcoholic beverages and tobacco.

 

A total of 234 MPs voted for such a decision on Tuesday.


In particular, the document foresees an increase in excise duty on beer from the current UAH 0.81 per liter to UAH 0.87 per liter, wine – from UAH 2.33 per liter to UAH 2.51 per liter, sparkling wine – from UAH 3.38 per liter to UAH 3.65 per liter, cider – from UAH 0.46 per liter to UAH 0.50 per liter, and ethyl alcohol – from UAH 45.87 per liter to UAH 49.49 per liter.


Lawmakers also decided that from January 1, 2013, to December 31, 2017, excise tax on brandy will go up by UAH 3 per liter of 100% alcohol by volume every year. Under current laws, brandy is taxed a reduced rate of UAH 27 per liter of 100% alcohol by volume until January 1, 2013.


In particular, a draft law calls for an increase in specific excise rates on non-filter cigarettes, from UAH 49.48 per 1,000 cigarettes to UAH 72.7 per 1,000 cigarettes, and on those with filters from UAH 110.64 per 1,000 to UAH 162.6 per 1,000 cigarettes. In addition, the draft law is to introduce an excise tax on raw tobacco at UAH 217.60 per kg, whereas the current rate is zero.


At the same time, the document assumes a reduction in ad valorem rates on non-filter cigarettes from 20% to 12%, and on those with filters from 25% to 12%.


The document also fixes the minimum excise tax liability for the payment of excise tax on tobacco products at UAH 95.40 per 1,000 non-filter cigarettes and UAH 217.60 per 1,000 cigarettes with filters.


The draft law also foresees that from January 1, 2014, the specific excise rate on non-filter cigarettes will be set at UAH 77.5 per 1,000 cigarettes, from January 1, 2015, at UAH 82.5 per 1,000 cigarettes, while the specific excise rate on cigarettes with filters will be UAH 173.2 and UAH 184.5 per 1,000 cigarettes respectively.


The law is to come into force as of January 1, 2013. However, the new excise rates on alcohol will become effective on the first day of the third month after the publication of this law.