The Parliament increased excise taxes on alcohol and tobacco

The Parliament adopted in the second reading the bill number 10687, under which the excise rate on alcohol rises by 11%, for cigarettes – by 7.5%.

234 deputies voted for the bill "On Amendments to the Tax Code of Ukraine (concerning changes in rates of certain taxes and fees)", while the required minimum number was 226 votes.

The provision on indexation of rates on petroleum products was removed from the law due to the fact that the rate is calculated in euros.

The law provides for changing tax rates and fees based on the consumer price index, which, according to the head of the relevant committee Vitaly Khomutynnik, is projected at 7.9%, and the index of industrial producer prices, which according to the Cabinet of Ministers of Ukraine are forecast at 107.9 and 109.4% respectively; recalculating excise tax rates on petroleum products and cars from euro to hryvnia, as consumer price indices are defined in local currency; increasing the excise duty on all types of alcoholic beverages by 11.2%.

The excise rate on beer is proposed to be increased from the current 0.81 UAH / liter to 0.9 UAH / liter, for fortified wines – from 2.33 UAH / liter to 2.59 UAH / liter, for sparkling wines – from 3.38 UAH / liter to 3.76 UAH / liter, for cider – from 0.46 UAH / liter to 0.51 UAH / liter, for alcohol – from 45.87 UAH / liter to 51.01 UAH / liter.

Also, the law increases the rate of excise duty on non-filter cigarettes to 53.39 UAH per thousand pcs. instead of the present 49.48 UAH per thousand pcs., for filter cigarettes – to 119.38 UAH per thousand pcs. instead of the current 110.64 UAH per thousand pcs. It is expected that the law will take effect on January 1, 2013.

RBC-Ukraine