Poroshenko has approved a significant increase in excise duties on cigarettes and alcohol

Poroshenko has approved a significant increase in excise duties on cigarettes and alcohol

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He signed the law, in particular, increases excise taxes on beer, fortified wine and vermouth, sparkling wine.

The President of Ukraine Petro Poroshenko has signed the law “On amendments to the Tax code regarding the balance of budget revenues in 2017” (No. 5132). It envisages increasing excise taxes on alcohol and tobacco productsand the rental rates for use of mineral resources and radio frequencies and is necessary to balance the budget in 2017, reports Interfax-Ukraine.

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The law, in particular, increases excise taxes on beer, fortified wine and vermouth, sparkling wine 12%, and on alcoholic beverages – 20%. The excise tax on cigarettes at the specific rate will increase by 40% without increasing ad valorem rates (12%).

Glad also reduced the rental rate for oil production from 45% to 29% (for deep mining over 5,000 m, from 21% to 14%).

The rental fee for the use of subsoil, water and forest resources increased by 10.4% – forecast rise in wholesale prices, normative monetary evaluation non-agricultural land increased by 6%, the fixed agricultural tax – by 14%, while agricultural land left on the same level.

In addition, the document makes changes to the Tax code to finalise the transfer of farmers to the General regime of taxation on value added.

Earlier it was reported that the average price of a pack of cigarettes is expected to grow 4.5—5 UAH to 23 UAH.

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