The Ukrvynprom corporation has asked the government not to allow the destruction of the grape growing and winemaking sector in Ukraine due to the increase of the excise duty.
The press service of the Chamber of Commerce and Industry of Ukraine reported that the address on the new excise policy was sent by the corporation to Agricultural Policy and Food Minister of Ukraine Oleksiy Pavlenko. The Committee of Entrepreneurs of the Agro-Industrial Complex at the Chamber supported the address.
Winemakers oppose the increase of excise duty on still wine by 500, sparkling, fortified and flavored wine by 50% and cognac by 135.26% from March 1, 2016 proposed in the bill on the creation of competitive conditions in taxation and stimulation of the economic operations in Ukraine.
The bill envisages the annual increase of excise duties by 5% more and by annual inflation in next five years.
Winemakers said that the increase of the excise duties is a step towards the destruction of the sector, the increase of the shadow alcohol market and the increase of social tension, especially in the regions where the sector is the budget-forming one.
The European Wine Committee (CEEV) supported the initiative of Ukrvynprom. Secretary General of CEEV Ignacio Sanchez Recarte sent an address to Ukrainian Prime Minister Arseniy Yatseniuk, Finance Minister of Ukraine Natalie Jaresko and Head of the State Fiscal Service of Ukraine Roman Nasirov on the consequences of the sharp increase in the excise duties on wine in Ukraine.
"One more problems that should be resolved is the large cost of the license for wine wholesale for producers – UAH 500,000 a year. This is acceptable only for large wine producers and leads to monopolization of the market and reduction of competition between producers," winemakers said.
