Ukrainian government looking to triple alcohol duty.

mukraineHere at Hashtagbeer are not all about Britain (even if there is a reason were called great), We believe in extending a hand to our fellow drinkers across this little blue orb that we call Earth, So its with great sadness that we must report that the Ukrainian government has decided to triple its duty on beer, This move will see them take the duty from 0.87 hryvnia to 2.43 hryvnia per litre, effectively tripling the price of beer. To make matters worse they will be doing this in one big gulp, This will not be an increase overtime but will rather see it come all at once. When asked to comment the Ukrainian government had this to say.

“As of today, in Ukraine, beer is not an alcoholic drink and that’s why its production and distribution are not subject to licensing,” the ministry said. “Lack of control of beer production and sales, which is accompanied by low taxes, led to low beer prices, while the price of water, milk or juice is much higher.”

The Ukrainian government hopes that this increase will help them raise more taxes to fight the countries financial woes, They currently have a deficit of 5.1 percent and are looking to the IMF to bail out the country for the third time in four years.

Naturally the main companies aren’t happy with this news, They claim that this will make trade in a already diminishing market even harder, Analysts also anticipate that the tax increase may cause the beer market to contract by as much as 25 percent and lead to an overall decline in taxes paid by the industry.

 

 

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