Reform objective
To promote the craft brewing development.
Mechanism
Reducing the tax burden and increasing the maximum production quota for small producers.
Instruments
Draft Law #5118 “On the Introduction of Reduced Excise Tax Rates on Alcoholic Beverages (Beer) for Small Beer Producers” and the Draft Law #5119 on amendments to the Law of Ukraine “On State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Alcohol, Alcoholic Beverages, Tobacco Products, Liquids Used in E-cigarettes and Fuel” regarding simplifying economic activities in the production of beer, grape wines, fruit wines, and honey beverages.
Proposals
Increasing the maximum production quota to 20 million liters per year for small beer producers following European legislation, canceling the wholesale license for small beer producers, reducing the excise rate by 50% for small beer producers, differentiating fines depending on the annual production volume, and reducing the fine for small breweries.
Why is this essential for Ukraine?
The cancellation of wholesale licenses for craft breweries and excise duty reduction will allow companies to save about 346.4 million hryvnias and use these funds to increase production. At full potential, private breweries will be able to create up to 3,000 additional jobs, and the Ukrainian budget will receive about 215 million of excise duty, unified social tax, personal income tax, and military duty.