Business news from Ukraine


17 September , 2021  

“Resource” bill No. 5600, which is now being considered by the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, suggests an almost two-fold increase in the cost of a license for the right to wholesale trade in tobacco products in 2022 – up to UAH 975,000 (150 minimum wages), and in 2023 – three-fold, to UAH 1.49 million (230 minimum wages).
MP Nina Yuzhanina (European Solidarity faction) wrote about the initiatives introduced during the consideration of the bill on Facebook on Thursday.
“The cost of the license is untied from a fixed size and transferred to the minimum wages. Argumentation of the Ministry of Finance: today there are 109 such licensees, of which only 54 have an income of more than UAH 12 million. The rest, obviously, are used in schemes. It is not clear how this will help overcome smuggling and counterfeit in the market?” she wrote.
In addition, the proposed initiative obliges manufacturers of electric heating tobacco products to determine ceiling retail prices for these products, which will be used in calculating value added tax (VAT) and excise taxes. Also, data on ceiling retail prices will be necessary for the functioning of the new system of administration of the 5% retail excise tax, which will go to local budgets, she said.
Yuzhanina said that the amendments to the “resource” bill will improve the mechanism for preventing the accumulation of stocks by manufacturers and importers of tobacco products before the next increase in excise tax rates. If the bill is passed, this rule will be in effect from 2022.
MP Yaroslav Zhelezniak said on Telegram that the parliamentary committee began considering the bill on September 13 and plans to consider more than 11,000 amendments five hours a day.

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