Tuesday, July 26, 2011

Cigarettes to rise more alcohol in 2011

Since the new year tobacco and alcoholic beverages will rise in price due to the entry into force of new higher excise duties on this product. However, for some reason cigarettes are stronger than the rise in price of alcohol, experts say. "Through tax reform, the government adhered to the principle of neutrality of income. That is, if somewhere taxes are reduced, then somewhere compensated for an increase, for example, increased excise taxes," - said in exclusive comments UBR.UA Natalia Leshchenko, an economist at the Bureau of Economic and social technologies. However, according to her, do not expect that the prices of excisable goods will increase commensurate with the increase of excise duty. "This margin is always split between the buyer and seller, but a definite increase in prices is bound to be.'s Hard to say how much prices will rise to this group of products, but you can predict that tobacco prices will increase by more than alcohol, as this is more inflexible products - from cigarettes harder to give up, like go to another, cheaper brand. Accordingly, the alcohol will rise in price is less, "- says Leshchenko. Recall, the Verkhovna Rada approved the rates of excise duty on alcohol, alcoholic beverages and cigarettes, which should enter into force on 1 January 2011. According to the document, the excise rate on cigarettes with a filter to be increased from 90 to 96.21 hryvnia / thousand units, non-filtered cigarettes - from 40.25 to 43.03 hryvnia / thousand units. Also increase the excise rate on cigars, tobacco, tobacco substitutes, tobacco, chewing tobacco and snuff. Also in 2011, excise tax on fortified wines and vermouth to increase by 14 kopecks per liter for sparkling wines - by 20 kopecks per liter, alcohol and alcoholic beverages - 2, 74 hryvnia / liter of 100% alcohol.

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