Excise tax from sale of tobacco products, alcohol beverages and ethyl alcohol: results of March 2020

State tax service ensured the excise tax revenues in the amount of 5 889.2 million UAH in March 2020. Including 5 583.7 million UAH from excisable goods produced in Ukraine and 305.5 million UAH from imported ones. Fulfillment of indicative figures determined by the Ministry of Finance of Ukraine amounted 101.3% and 106.7% respectively.

In Ukraine the excise tax has a significant share in formation of the State Budget of Ukraine. For 78.7% this indicator is formed by the tobacco industry. Tobacco producers ensured 4392.7 million UAH of the excise tax revenues in March 2020 – this is 1308.4 million UAH more than in March 2019. Growth rate is 142.4%. This indicator was made possible by the comprehensive measures aimed at combating the production and detection of illegal products on tobacco market.

As of the excise tax on ethyl alcohol, revenues have increased almost by 8 times compared to 2019 and amounted 61.4 million UAH.

STS has taken a number of measures in order to improve the administration of excise tax and to eradicate the shadow sector in Ukraine during the current year. Namely: total replacement of the tax specialists at tax posts in alcohol factories, sealing of places of unauthorized selection of alcohol, control over the flow-meters, mass audits of locations with the retail sale of excisable goods and systematic counteraction against production and distribution of the counterfeit products. It should be noted that at present the State enterprise “Ukrspyrt” being under the STS control increases the volume of production of antiseptic measures which are essential for the state today.

“Strengthening control over the market of excisable goods is profitable. Joint measures by the tax and law enforcement agencies have already led to a significant increase in excise tax revenues. And we do not stop there. In times of crisis, every hryvnia is important which can become a support for business and population during this difficult time. ” – emphasized Chairman of the STS Serhii Verlanov.

State tax service expresses gratitude to all producers of excisable products who work legally and provide the country with budget revenues.