12:00 07.07.2015

Economy ministry suggests differentiated approach to wholesale license for breweries

2 min read
Economy ministry suggests differentiated approach to wholesale license for breweries

Ukraine's Economic Development and Trade Ministry says it supports the abolition of the license fee for wholesale trade in beer for small-sized private breweries and says it should be applied to large-scale beer producers only.

"We're finalizing a bill to hammer out a proper approach to the problem. Various prices [of a license for wholesale trade in beer], depending on the size of a business is quite a fair, differentiated approach, which is supported by brewers, including large breweries," Deputy Economic Development and Trade Minister Maksym Nefyodov wrote on Facebook.

In his Facebook post he suggested cancelling the license fee for small-sized private breweries and small distributors, while medium-sized breweries and distributors will pay a reduced fee for the license, and the license fee for large companies will remain at UAH 500,000 per year.

He said that small-sized breweries were affected by the introduction of licensing for wholesale trade in beer, set at UAH 500,000 per day as of July 1, 2015.

"The amount is insignificant for large breweries, and it won't help fighting beer consumption among minors, but it is deadly for small breweries, who brew great beer, create jobs, and some have even started exporting their product to neighboring markets," Nefyodov wrote..

As reported, amendments to the Tax Code became effective on July 1 to include beer in the category of strong drinks, thus prohibiting beer advertisements on television and radio during the daytime, as well as outdoor advertising.

Certification and licensing of beer production, the certificate of conformity, licenses for beer imports and exports have been introduced. In addition, the changes foresee new requirements for labeling, as well as a ban on the use of branded hardware: furniture, glasses, umbrellas and so on, and sponsorship of sports teams.

Manufacturers of beer with a strength exceeding 8.5% should use excise stamps for wine and spirits.

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