The Bill (Reg. No.3409-1) envisages "gradual increase of the rate of excise duty on alcoholic beverages, tobacco goods and beer". Furthermore, the mechanism of annual adjustment of fixed rates of excise duty for inflation should be launched since 1 January 2012.
The Bill introduces amendments to the Law "On State Regulation of Production and Turn-Over of Ethanol, Cognac and Fruit Alcohol, Alcoholic Beverages and Tobacco Goods", extending its effect onto beer.
S.Teriokhin, Committee Chairman, stated that "gradual increase of rates of excise duty will create transparent conditions of entrepreneurship for manufacturers of such goods, as the Bill clearly defines terms and rates of increase, and determines further procedure of annual adjustment of fixed rates of excise duty for inflation of the certain period".
Moreover, under the conditions of deterioration of Ukraine´s international balance of payment, the Bill will provide extra revenue of the State Budget. Thus, in 2009 introduction of increased rates of excise duty on tobacco goods and alcoholic beverages will yield 2,7 billion UAH to the State Budget.