The Ukrainian brewing enterprises have asked the Ukrainian parliament (Verchovnaya Rada) not to sustain the offer of the government about rising the beer excise from 0.23 hryvnia per liter up to 0.26 hryvnia per liter, the representatives of close corporation Ukrpivo reported in a statement.

According to Ukrainian brewers, the existing beer excise of 0.23 hryvnia per liter is a critical limit and a further increase will lead to the production axe and liquidation of medium and small enterprises. The representatives of branch also mentioned that in spite of excise increase (since January, 1, 2003), growth of tariffs on electric power and water, absence of the main domestic raw material (hop), brewers haven’t increase the beer prices for the last two years.

Besides, this brewers refer to the law on the tax system, providing stability of the taxation during fiscal year. The respective letter was signed by Sarmat, Obolon, SUN Interbrew Ukraina, Ukrpivo, Ukrainian quality association and sent to chairman of Verchovnaya Rada and chairmans of budget and finance committees.

As it was informed earlier, the government of Ukraine suggests to rise the beer excise since July, 13% up in comparison with current one - up to 0.26 hryvnia per liter with the purpose to increase the budget receipts. The government suggestion has been approved by parliament in the first reading.

In autumn 2002 Verchovnaya Rada increased the excise-duty on beer by 9.5% from 0.21 hryvnia to 0.23 hryvnia per litre. (1 Ukrainian Hryvnia = 0.1667 EUR)

19 May, 2003