The rise in prices of alcohol the budget does not fill: the Ukrainians will go to moonshine and brandy expert

Подорожание алкоголя бюджет не наполнит: украинцы перейдут на самогон и наливки - эксперт

The Cabinet increased in September 2018 the minimum retail prices for alcohol based on the increase in premiums in the state budget. But it’s a mistake to assume that thanks to the adopted measure, the budget will receive a lot of money.

This commentary, ГолосUA said General Director of Ukrainian Association of trade networks suppliers Oleksiy Doroshenko.

“The question is, how many people will be able to buy alcohol at the new prices. Here. How to increase the minimum retail price, so rising and charges to the budget”, – said the expert.

A. Doroshenko said that the Cabinet at higher minimum prices guided by the state statistics service. But this is not the right benchmark.

“To raise as much as possible, but I would recommend the latest household surveys of the state statistics, which States that people in the Ukrainian village drink 30% less than people in the city. I wouldn’t have believed it. And that means only one thing: there’s a lot of “Nalivaiko”, where people simply refused the purchase of alcohol because they are driven brew, make wine, put the brandy, Mead, and everything else. So this just clearly shows that increasing the cost of alcohol,” he described the situation to the expert.

The Cabinet of Ministers of Ukraine at its meeting on Wednesday, September 5, raised the minimum wholesale release and retail prices on vodka and LIKERO-vodka products 12.4 19.6 per cent. So, half-liter bottle of vodka will cost 89,4 hryvnia. About it reports “Interfax-Ukraine”. According to the government decree, the minimum retail price of half-liter bottle of vodka is proposed to increase by 12.4% to 89,4 hryvnia (up to 447 USD for 1 liter of 100 percent alcohol). Minimum wholesale selling price of vodka and alcoholic beverage products increased by 19.6% to 321 per liter of 100 percent alcohol.

The minimum price on natural wines increased by 13.5% to 42 hryvnia per bottle of 0.7 liter in the retail trade, and fortified wine and vermouth by 8.9% – up to UAH 49. The price for a bottle of champagne with a volume of 0.7 liters will rise by 12.4% to 89 USD.

In addition, the government resolution provides for an increase in the minimum wholesale price of cognac “three stars” with the current 386,98 hryvnia per 1 liter of 100 percent alcohol to 412,5 of the hryvnia. Thus, the appropriate bottle of cognac will grow in value with 597,3 641,6 of the hryvnia to the hryvnia, and a bottle of cognac “four stars” will cost 455,2 696,7 of the hryvnia and hryvnia.

Regarding cognac “five stars”, its a minimal wholesale price reduced from 495,95 UAH to RUR 481.6 hryvnia, then the retail value of this alcoholic netcatalyst with 692,6 758,3 of the hryvnia to the hryvnia.

According to the explanatory note to the government decision, the minimum prices on alcoholic products, which apply today, were approved in September 2017. Raising the minimum price of alcohol is associated with higher prices for components production, in particular, the price of alcohol, containers, components.

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