Ukraine looks to hike alcohol prices

Ukraine is planning to introduce a major price increase for alcoholic beverages, according to a proposal published by the country’s Economy Ministry on Wednesday.

Under the proposal, wholesale hard-liquor prices are expected to see an increase of between 34% and 42% with retail prices to rise by up to 25%.

Meanwhile, retail prices for wine products may go up by between 61% and 71% with prices for sparkling wine and fizzy alcohol drinks to be hiked by 28%.

The bill is expected to help producers to cope with rising production and sales costs, the ministry said, adding that raw materials, equipment components, energy, labor costs, as well as excise tax rates have been rising.

“The current minimum prices do not reflect the real costs that enterprises have to face, and require adjustment,” the explanatory note issued by the ministry reads.

In July, Ukrainian Economy Minister Julia Sviridenko said the increase in gasoline prices in the country could exceed 20%, attributing the hike to the restoration of VAT and excise taxes by the country’s government.

Annual consumer inflation in July saw a year-on-year decline to 11.3%, marking a 0.6% drop compared to the previous month, mainly due to a seasonal decrease in prices for vegetables.

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