When considering the draft law at the Committee meeting on April 20, it was noted that the purpose of the draft law No.2739 is to create a favorable legal framework that will facilitate the commencement of operations in the market of new enterprises with small volumes of terroir wines (wines of certain territory) production, fruit wines and unique honey drinks from own (not purchased) materials.
The draft law proposes to supplement Article 1 of the Law "On state regulation of production and turnover of ethyl, cognac and fruit spirit, alcoholic beverages and tobacco products" with new terms "wine materials," "grape wine materials," "fruit wine materials," "honey wine materials," "grape wine," "fruit wine," and "honey drink."
The draft law also foresees a number of amendments to Articles 3 and 15 of the Law of Ukraine "On state regulation of production and turnover of ethyl, cognac and fruit spirit, alcoholic beverages and tobacco products," according to which a business entity, which has received a license for the production of alcoholic beverages (grape, and fruit wines or honey drinks) and produces them from wine materials (grape, fruit or honey) of exclusively own production (not purchased), has the right to carry out wholesale trade with the mentioned alcoholic beverages without obtaining a separate license for such wholesale trade.
In addition, it is proposed to supplements Article 17 of the Law with the provision stipulating that financial sanctions (fines) do not apply to business entities engaged in wholesale trade with alcoholic beverages without obtaining a separate license in cases envisaged by the Law.
During the discussion, it was noted that the result of the practical implementation of the legislative initiatives will be solving of social problems with creation of new jobs in rural areas, additional financial receipts in the form of taxes to state and local budgets, which will promote regional infrastructure development.
Given the creation of favorable conditions for the production of honey drinks and fruit wines (without the addition of spirit), which are now not available in the market, the average annual volume of production will preliminary comprise 10 million litres and 50 million litres respectively, which will give an opportunity to increase annual financial receipts in the form of taxes.
At that, 55 wine manufacturers, which are located in mainland Ukraine and according to data of the State Fiscal Service of Ukraine, in 2010-2013 paid money for wholesale trade licenses, will continue paying it as they will not fall under the effect of the proposed amendments to the Law of Ukraine because they purchase wine materials and then transform them into products for their subsequent sale to retailers and other business entities.
The Committee members also considered the alternative draft law "On amendments to the Law of Ukraine "On state regulation of the production and turnover of ethyl, cognac and fruit spirit, alcoholic beverages and tobacco products" concerning the wholesale trade with alcoholic beverages produced from wine materials of own production (not purchased) No.2739-1 and decided to recommend that the Verkhovna Rada reject it.