The shadow vodka market in 2017 could expand to 65% compared to 50% this year, the Ukrvodka association has said.

"The market is sliding to the shadows, and the number of fake vodka poison victims is growing. After increasing the excise duties by 20%, the share of the illegal market would grow from 50% to 65%," Ukrvodka Head Volodymyr Ostapiuk told Interfax-Ukraine.

He said that the association is disappointed by the decision of the parliament to increase excise duties by 20%, as initially parliamentarians discussed the 12% rise.

"They were increased, despite the decision of the profile committee that proposed to increase the rate by inflation level – 12% for all categories of alcohol and get additional payments to the budget," Ostapiuk said.

He said that since 2014 the excise duty on fortified alcohol soared by 115%, and revenue of the budget did not change – UAH 5.9 billion. It does not grow.

"This year they planned to additionally collect UAH 3 billion thanks to a rise in the excise duty by 50% in March 2016. Finally they collected slightly over UAH 250 million. Is this math not enough to understand that the increase of excise duties on vodka as a tool has exhausted in replenishing the budget?" the expert said.

As reported, parliament increased excise duties for beer by 12%, to UAH 2.78 per liter, liquor and vodka – by 20%, to UAH 126.96 per liter of 100% ABV.

The excise duty for dry wine is kept unchanged, being UAH 0.01 per liter, the rate for fortified wine and vermouths is increased by 12%, to UAH 8.02 per liter and sparkling wine – by 12%, to UAH 11.65 per liter.