Raising minimum alcohol prices will replenish the state budget and ‘push out’ unscrupulous producers from the market – opinion

He recalled that the minimum retail prices for wine and spirits products have not been raised since 2018, and that they are regulated by the Cabinet of Ministers.

“This will lead to higher tax revenues for the state budget and resolve the issue of counterfeit products,” the head of the industry association assured.

Pechko drew attention to the fact that very cheap wine is currently on store shelves, which is of extremely low quality.

“Such a product sometimes costs 40–45 UAH/l. And compare that price with juices, which are significantly more expensive – that simply cannot be. In order to sell cheaply, the so-called producers are forced to mix something into their product or dilute the wine with water. Accordingly, the solution proposed by the parliament will ‘push out’ unscrupulous producers from the market,” explained the head of Ukrsadvynprom.

Pechko confirmed that as a result of such actions by the parliament, wine will become more expensive for the end consumer, noting also that this process regarding alcoholic products in the country began long ago. He explained the rise in prices of wine and spirits products by the increased cost of gas, which led to higher prices for glass containers.

In addition, plant protection products became more expensive in the 2024 season, and the price of grapes is setting records, having almost doubled. “If wine has not become more expensive at the same time, that should raise questions for the consumer and should worry them. Raising the minimum retail price by 50% for alcoholic products is a very modest price increase. At present the minimum retail price subject to excise tax is 42 UAH/l, whereas it should be no less than 95 UAH/l,” Pechko said.

The head of Ukrsadvynprom advised consumers to choose wine on store shelves priced at no less than 130, 150 or 200 UAH per bottle, so as not to risk their health and to be sure of the quality of the product they buy.

As reported, the Verkhovna Rada adopted as a whole the law (No. 11416d) amending the Tax Code on the specifics of taxation under martial law, which provides for raising the military levy from 1.5% to 5% from October 1 this year and the corporate profit tax of banks to 50% for 2024. Among the other new provisions are the introduction of advance payments on the profit of gas stations, tying the advance payment rate for currency exchange offices to the euro, an increase in the minimum tax liability for agricultural land and an increase in the royalty on crushed stone extraction, but at the same time an exemption from taxation of funds received by citizens under the national cashback program.