Un-shadowing of alcohol market: results of March 2020

Excisable goods turnover and taxation control department of the State tax service of Ukraine has started systematic counteraction against the illegal production and turnover of alcohol beverages since the moment of creation.

Comprehensive approach has been applied including not only audits of the retail chains but also controlling the plugging of idle production lines, controlling the flow-meters and other measures that, combined with in-depth tax reporting, significantly increased the excise tax revenues.

As a result, revenues to the General fund of the State budget from excise tax on alcohol beverages have amounted 541.4 million UAH as of March 30, 2020 – which is 19.2% (87.3 million UAH) more than revenues in March2019. Herewith, March indicators have already exceeded 18.3% (+ 83.8 million UAH).

As of 30.03.2020, the indicative figures on the excise tax from alcohol beverages for the first quarter have already been fulfilled by 100.9% (+ 11.1 million UAH).

“Strengthening the control over production of alcohol beverages and systematic counteraction against the counterfeit alcohol in the retail network that we’ve been conducting over the last three months gave a result. Measures taken by the Tax service jointly with the law enforcement agencies and local authorities have led to a rapid increase in budget revenues from the excise tax. In addition, the un-shadowing of alcohol market is important not only in terms of budget’s filling. Production and sale of the counterfeit goods is also a direct danger to the health of consumers” – stated Chairman of the State tax service Serhii Verlanov.