Ukraine's government proposes excise tariff changes for alcohol, tobacco

Excise tariff changes for producers and importers of alcohol and cigarettes could be introduced under an automated system of revenue control of goods subject to excise fees.

A respective piece of legislation drafted by the Cabinet of Ministers of Ukraine (No 6545-1) was registered in the Verkhovna Rada of Ukraine on June 21.

The automated system of excise goods revenue control could replace the paper stamps used to label the products. Excise stamps will retain a special symbol, which will confirm payment of tax. The stamp can be a paper symbol that can be printed on a pack or product wrapper.

The government also recommends rescinding today's electronic register of goods-transportation documentation accompanying offloading of spirits and liquor products.

The Cabinet proposes introducing an electronic excise mark for the transportation of cigarettes, spirits and liquor productions, which will be filled out by sellers with a license to sell the products. After filling out the electronic excise paperwork, commercial entities will be able to register it in the unified register of excise goods.

Confirmation of registration would be an electronic receipt that sellers of the goods would receive within the course of one working day.

The draft law also outlines the mechanism for filling out electronic excise paperwork.

The Cabinet will approve the procedure for entering excise goods into the unified excise goods register.

The government foresees a ban on the transportation of spirits and liquor products without excise paperwork already registered in the unified register of excised products database.

The system would operate in test mode for 180 days, without imposition of penalties for non-observance of registration deadlines for registering excise products in the unified register.

Automated control over turnover of spirits and cigarettes, according to the draft law, would make it possible to track the products from the producer or importer through to the moment they are sold on the retail market. The government expects to reduce the shadow market for excise goods and increase budget receipts at all levels by introducing the new system.