Sweet Tax in Ukraine
According to the recent Tax code update, Ukrainians should pay more for alcohol & tobacco products in 2016. The excise taxes have increased steeply: tobacco products – by 40%, low alcohol beverages – by 300%, beer and wine – by 100%, alcohol beverages – by 50%. The expected contribution to Ukraine’s 2016 budget of these increased tax rates is projected at 18.1 billions UAH. Vice taxes thus have the potential to generate substantial revenues for the Ukrainian budget, so the Ukrainian government might well want to consider additional vice taxes.