The current minimum prices do not cover production costs
The Cabinet of Ministers on Wednesday, August 9, adopted a resolution according to which should increase the minimum wholesale release and retail prices on separate types of alcoholic beverages.
About it reports a press-service of the government.
“The minimum price of alcohol, which operates today, was introduced in November 2016. At the same time in 2017 increased rates of excise tax for most alcoholic beverages (vodka, LIKERO-vodka products, cognac, wine, etc.). Has occurred and the growth of other components of price, so today the minimum prices do not correspond to the real costs of production and realization of alcoholic beverages”, – noted in the Cabinet.
Accordingly, the Ministry has received numerous appeals of market participants, who noted that current minimum prices do not cover their operating costs.
“As a result, according to associations of producers of alcoholic products, reduces competition from legitimate manufacturers and increasing share of unscrupulous manufacturers. This is because such companies can reduce their operating costs by purchasing unrecorded alcohol, the use of surrogate substances, tax evasion, counterfeiting and the like.
To protect consumers from counterfeit and surrogate products to reduce the share of the shadow economy, the Cabinet of Ministers raised the minimum price of alcohol. In particular, retail prices for vodka and alcoholic beverages to increase by 14.0-19,41%; whiskey, rum and gin 6.5-6.6 per cent; cognac (brandy) – 12.3-29.1 per cent; wines with added alcohol, sparkling 7.1 and 13.3%”, – stated in the message.
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