Juvenileization of the alcohol market in Ukraine: the budget received an additional 3.3 billion hryvnias

Since the beginning of 2024, revenues to the budget from the alcohol sector have increased significantly. According to the head of the Finance Committee of the Verkhovna Rada, Danylo Hetmantsev, in the first ten months of this year, excise duties and VAT on the sale of liquor and vodka products exceeded the indicators of the same period in 2021 by 43.5%. This became possible thanks to active measures to decriminalize the alcohol market.

Thanks to new anti-corruption initiatives, the budget received an additional 3.3 billion hryvnias. The main reason for the increase in revenues was the increase in excise tax payments, which amounted to 1.5 billion hryvnias — 26.7% more than in 2021. In addition, the efficiency of VAT revenues has increased significantly: as of 2024, tax efficiency has reached the level of 6.74%, which is 30.7% more compared to 5.16% in 2021.

According to Hetmantsev, draft law No. 12038, which provides for the calculation of excise tax based on the maximum capacity of production lines of distilleries, will be an important step in the fight against illegal schemes. This legislative innovation is aimed at improving transparency in the production and accounting of alcohol, which will increase revenue to the budget.

The growth of legal volumes of alcohol production has also become a noticeable trend. Production is forecast to reach 12 million deciliters in 2024, up significantly from 2021 when only 7.4 million deciliters were produced. This indicates the activation of legal producers, who are increasingly replacing the illegal market with quality products.

In the first seven months of 2024, total revenues to the budget increased by almost 20% compared to the same period last year. This provided an additional 1.1 billion hryvnias. In particular, the excise tax on domestic producers of alcohol products brought in half a billion hryvnias more, which is 10.8% higher than in 2023.

The increase in sales and the activation of production in the legal sector show the positive impact of government measures on the economy. The total revenue from the sale of alcohol products has already reached 119.4 billion hryvnias, which is almost equal to the results for the entire year 2023. Such dynamics emphasize that increased attention to the detinization of the alcohol market is becoming an important resource for the state budget of Ukraine.