A. Doroshenko: “because of the greed of the Cabinet of Ministers in Ukraine will continue to go up alcohol”

А. Дорошенко: «Из-за жадности Кабмина в Украине продолжит дорожать алкоголь»

On 2 October, all retail stores of the country have to raise prices on a number of alcoholic beverages. Entered into force published on 22 September, the Cabinet of Ministers of Ukraine about increase of the minimum wholesale release and retail prices on alcoholic beverages. The ГолосUA decided to find out what really is involved in the growth of prices for alcoholic drinks, and asked about this the Director of the Ukrainian Association of trade networks suppliers Oleksiy Doroshenko.

– In Ukraine will rise substantially before the end of the year?

– Cigarette. Due to the fact that we get to 2023, we leave on the European level of excise taxes. There is currently no regulation of prices for social products in Ukraine. It ended up that once again fell social standards, in the end it led to a decrease in the purchasing power of Ukrainians. Now retired nothing is impossible to buy. For a large part of the products is already higher prices. For example, social bread price rises. By the end of the year it will grow by another 10%. Vegetables borsch set to the end of the year will grow by 40%. The carrots we have is 30% more expensive than in Poland. So it already will not go up. Milk little will grow in value. By the end of the year is expected to rise in price of bacon on one hryvnia per month. Until the end of the year, pork and beef will add 1-1,5 hryvnia per month. A kilogram of pork costs 110 UAH. More expensive for 127 UAH per kilo, and sell the beef.

– What is the increase in the price of alcohol?

– Increase of alcohol occurred due to the insatiable greed of the Cabinet. The government has raised the minimum retail prices of 13% since the budget has no money. The Cabinet used to receive money from excise taxes. The problem is that to raise the excise duty can only be laid in this budget. In the state budget 2018 such a rule was not provided, so they raised the minimum retail prices. In fact, now manufacturers and sellers will pay more taxes. From 1 January we will see an official increase in the cost of alcohol. In particular, due to the growth of prices on excise tax, then the alcohol will automatically rise by 9% from minimal retail price. So for four months Ukrainians expect the price hike of alcohol in 2 times. These measures are necessary for the government to fill the budget, as many state employees say that they cut all bonuses, because the money in the Treasury not enough.

Will the rise in price of alcohol on the growth of the black market?

– After a rise in price of alcohol even more Ukrainians will resort to self-production of alcohol as the other they will not afford. Accordingly, the shadow market will only increase. At the moment the shadow market of vodka ranges from 50 -80%, beer – less than 5%, only due to the fact that craft Breweries can not afford to buy a license for wholesale sales. But the wine market is very much antiroman, however, maintain its official records is difficult, as many people have made wine for sale and own consumption.

– How many times does the cost of Ukrainian alcohol from the European?

– If to speak about European rates of the excise tax in Ukraine, the problem is that we are seeing their incomes can afford are several times smaller than EU citizens. If to speak about vodka, the increase in excise duties by 10%, which will take place from 1 January, will bring it to the European value. In addition, the poles often came to Western Ukraine to make the purchase. This year they return with empty hands, because I see that the price of vodka is characterized by 10-15%. About beer, Ukraine a year ago is already out at a cost to the European minimum excise tax. That is, the Ukrainian beer sold at the European price. As for the wine, most of it is already imported. Domestic – now is 50-60%. The question is, what is the Ukrainian wine is produced from imported wine materials, which are brought into the country from Moldova, Spain, Italy, and France. We gather the cheapest wine and it produced Ukrainian wine.

– What about Ukrainian vineyards?

– We have a few of them to ensure that we fully provided the Ukrainian wine. The vineyard needs to live 80-120 years and only after 10 years can give the grapes suitable for wine. The Frenchman, who owns the largest production of wine in Odessa, complains that he was not allowed to grow vineyards. That is, after a certain time after planting the vineyards with them just terminate the contract. Accordingly, no one is interested in growing their own grapes for a major wine production. Ukraine has a very large problem with the wine industry.

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