A draft law of the State Fiscal Service of Ukraine on regulation of production and turnover of ethyl alcohol and tobacco introduces extra administrative and financial burden for business. BRDO experts expressed this view during the meeting with business and public representatives on February 16.
The SFS drafted the Law of Ukraine on amendments to the Law of Ukraine “On state regulation of production and turnover of ethyl, cognac and fruit, alcoholic beverages and tobacco products” and presents it as the one that has to improve licensing procedures (introducing electronic licensing) and simplify the procedure administration for business and the government, provide a grounding for fair competition between entities in this field, adapt Ukrainian legislation to EU norms, promote the country’s investment attractiveness and increase its position in the World bank’s ranking.
However, as BRDO experts noted, this draft law does not solve all the problems completely, and even introduces extra administrative and financial burden.
According to the BRDO expert Anna Palazova, it concerns proposed changes on the annual fee for a manufacturing license. As for today, the annual fee for ethyl alcohol, cognac, fruit, rectified ethyl alcohol grape, rectified ethyl alcohol fruit, alcoholic beverages, tobacco, alcohol, raw grape, fruit crude alcohol production for primary winemaking entities is 780 hryvnias.
The draft law proposes that annual fee for licenses to produce these types of goods will be 780 UAH, and in the case of wholesale trade of these goods, exports or imports – 500 000 UAH.
“As a result, the draft law proposes small and medium business entities (for example, primary producers of wine, beer, etc.) to pay 500 000 UAH additionally in case of wholesale trade, export or import. However, there is no financial and economic ground to introduce this fee,” Anna Palazova said.
Besides, according to her, the law drafter did not take into account the common position of the Government concerning reducing the number of permits in foreign economic activities.
Indeed, there is the government’s draft law №2498а “On Amendments to Certain Legislative Acts of Ukraine concerning reducing permits number in the foreign economic activity” of 11/08/2015 registered in the Verkhovna Rada. It proposes to abolish licensing for export and import of ethyl, cognac and fruit, alcoholic beverages and tobacco products and financial sanctions for entities that don’t submit reports in this area as measures unduly restricting the trade.