REUTERS
Ukraine's Cabinet of Ministers plans to raise minimum prices for liquor, according to the investigative journalism portal Nashi Hroshi (literally "Our Money").
On August 3, the Ministry of Economic Development and Trade of Ukraine submitted the corresponding draft resolution document to the government committed for further consideration, Nashi Hroshi reported.
The ministry proposes the following increase in the minimum prices of alcohol in retail trade: vodka and hard liquors by 8-11%; whiskey, rum and gin by 4%; cognac (brandy) by 3-6%; wine containing ethyl alcohol, as well as sparkling wine and vermouth by 2%.
Read alsoUkraine's government proposes 11% rise in minimum prices of vodkaThis means that the minimum price of a 0.5-liter bottle will be set at UAH 79.55 (US$3), while that of a three-starred cognac – at UAH 119 ($4.6).
The latest rise in the minimum prices of liquor was in November 2016, when the excise taxes were increased by 20% on vodka, by 17.6% on cognac, and by 12% on fortified wines.
The expert conclusion to the draft resolution indicates that the consumer price index for the second half of 2016 was 119.2% against 105.9%, which was taken into account when calculating the current minimum prices.
"Therefore, today the minimum prices do not correspond to the real costs of businesses for the production and sale of alcoholic beverages," the government experts said.
Read alsoUkraine law enforcers launch large-scale raid at 41 distilleriesAs UNIAN reported earlier, the Cabinet of Ministers resolution to raise minimum retail prices for vodka and other alcoholic beverages entered into force on December 2016. Vodka prices rose by almost a third: the minimum price of a bottle of vodka was set at UAH 69.8 ($2.7), that of fortified wine or vermouth – at UAH 42 ($1.6), and dry grape wine – from UAH 33 ($1.3).
On July 19, 2017, the Cabinet of Ministers approved a bill on increasing excise taxes on cigarettes, beer, and ethyl alcohol. The Cabinet will propose to the Verkhovna Rada to increase the excise tax on cigarettes from UAH 445.56 to UAH 495.46 per 1,000 pieces, on beer from UAH 2.78 to UAH 3.09 per liter, and on ethyl alcohol - from UAH 126.96 to UAH 141.18 per 1 liter of 100% alcohol.