Government to permit private companies spirit production
29.05.2008 13:49 "Agro Perspectiva" (Kyiv) —
Government is going to allow spirit production to companies of private form of property, reported today Serghiy Teriokhin, Chairman of Commission for Taxation and Customs Policy. As to Teriokhin, in order to evade uncontrolled spirit shipments, private companies have been permitted so far to produce ethyl spirit only for their own needs. “If this initiative becomes efficient, then, probably in 3-5 years, Ukraine will be able to come to spirit market full liberalization, as maintenance of spirit production State monopoly presently doesn’t allow spirit industry to successfully develop. As of now, industry constantly works at loss,” admitted Teriokhin. At same time, Volodymyr Demchak, Association “Union of Alcohol Drinks and Tobacco Products Producers and Wholesalers” (SOVAT) Chairman, thinks it is necessary to renew activity of Expert Consulting Commission for State Regulation of Spirit, Alcohol Drinks and Tobacco Products Production and Circulation. Demchak reminded Commission was created in Ukraine in 1995 (Commission was subordinated to Cabinet). Since 2006, however, Commission hasn’t held any meeting. Demchak said within years of its functioning Commission demonstrated rather high efficiency: Commission succeeded to work out main efficient legislation norms which subsequently assured unshadowing of alcohol/tobacco markets resulting in State budget incomes significant growth due to excise duties payments boost. SOVAT Chairman admitted within last few years dialogue on these issues between executive authorities and business representatives has been widening. It is to be reminded, Ukrainian 2008 first quarter spirit output has declined to 6.91 mn dl, down against 2007 similar; spirit export totaled 2.115 mn dl (practically unchanged against 2007 similar). As to Concern Ukrspyrt data, spirit output decline was caused by domestic market sales lowering. As earlier reported, Ukrspyrt companies planned to produce 36.3 mn dl non-denaturated ethyl spirit within 2008 (up 15.24% against 2007). Ministry of Agrarian Policy forecasted 2008 domestic spirit consumption would grow from 21.5 mn dl to 23.3 mn dl (spirit export – from 10.0 mn dl to 12.0 mn dl). As to Ministry forecast, 2008/09 spirit transitional reserves would rise by 0.5 mn dl.
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