Draft Law of Ukraine

“On Amendment of the Law of Ukraine “On Duty for Development of Viniculture, Gardening and Hop-Growing”

This draft offers to state in new wording the Law “On Duty for Development of Viniculture, Gardening and Hop-Growing”. Authors of the draft-law propose to leave in force norms relating to duty payers and its rates (sellers of alcohol drinks and beer shall pay one percent of proceeds gained from realization of beer and alcohol drinks in wholesale and retail trade network).

At the same time this draft offers to tax proceeds received from sale of alcohol drinks and beer only at one stage of realization in wholesale or retail trade network. The current Law does not precisely define whether the duty shall be levied at one stage or at every stage of realization. However, the Resolution of the Cabinet of Ministers N 1170 of June 29, 1999 stipulates that proceeds received at every stage of realization shall be subject to duty. Thus, the suggested wording of Article 2 of the Law will unambiguously exclude the possibility to levy duty repeatedly on alcohol drinks and beer on their way from producer to a consumer.

This draft also proposes to introduce new norms with regard to distribution of funds resulting from levied duty for development of viniculture, gardening and hop-growing. Such funds shall be mainly used to compensate the interest rate on long-term credits allocated to agricultural producers for cultivating new plantations of grapes, fruits, berries and hop.