Sunday, May 23, 2010

Cabinet rules out price increases on cigarettes, alcohol with increase in excises

May 21, 2010 (UKRINFORM). Vice Prime Minister for Economic Affairs Serhiy Tihipko rules out rise in the prices of goods due to the increase of excise on tobacco products and alcoholic beverages. "There will be no price increase," he said. At the same time, the Deputy Prime Minister stressed that he absolutely supports the increase of excise duties, noting that, for example, in Russia and in Belarus, excise duties on these products are higher than in Ukraine. "I have a question: why we can not raise today the level of excise duty on alcohol, tobacco up to theirs (Russia, Belarus)? How shall we make money? The budget should be based on this. State budgets have always been built on vodka, on tobacco, and today we are afraid of raising prices," Tihipko inquired. At the same time, he expressed some concern that during the adoption of these laws, there were also approved some rules relating to taxation, which were not supported by the government committee he chairs.