Ministry of Economy initiates increase in minimum prices for alcohol

KYIV. Nov 24 (Interfax-Ukraine) – The Ministry of Economy proposes to increase the minimum retail prices for alcoholic beverages, in particular for vodka and alcoholic beverages by 5-13%, wine products (except for sparkling and carbonated wine drinks) – by 40-85%, and for sparkling wines and carbonated wine drinks – by 12%.

The ministry published the corresponding draft resolution of the Cabinet of Ministers for public discussion on its website on Thursday.

In addition, it is planned to establish a differentiated level of minimum retail prices for regular (non-sparkling) wines, wines, vermouths and other fermented drinks depending on the type and capacity of the container/packaging: in glass and other containers with a capacity of 0.7 liters and in Tetra-Pak type packaging and Bag in box, metal cans made of food-grade aluminum, PET polymer bottles with a capacity of 1 liter.

According to the new prices proposed by the government, the minimum prices for vodka will increase by 4.7%, from UAH 89.4 to UAH 93.6 per 0.5 liter bottle, for cognac (brandy) three stars – by 6%, from UAH 128.3 to UAH 136 per 0.5 liter, four stars – by 6.6%, from UAH 139.3 to UAH 148.6 per 0.5 liter, and five stars – by 6.4%, from UAH 151.7 to UAH 161.4 per 0.5 liter.

For natural grape wines in glass containers with a capacity of 0.7 l, the proposed increase is 57%: from UAH 42 to UAH 66, sparkling wines in glass containers with a capacity of 0.7 l and 0.75 l – 11.9%, from UAH 109 to UAH 122 per bottle.

The document notes that the current minimum prices were established in 2021 and no longer correspond to the real costs of producers for production and sale of alcoholic beverages and require adjustment.

The Cabinet of Ministers expects that bringing the minimum wholesale and retail prices for alcoholic beverages to economically justified and sufficient level for producers to reimburse their own costs for production and sale of alcoholic beverages will increase the receipt of taxes and fees to the state and local budget by UAH 300 million.

In addition, this measure will help limit the consumption of alcoholic beverages by the population and reduce the number of deaths occurring from it.

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