Tax and accounting insights for Ukraine
25.04.24
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Licensing of excisable goods: The Verkhovna Rada is preparing an update

The Parliament has adopted as a basis a new draft law No. 10346 on state regulation of the production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes, and fuel.

In short, we are updating the law that was written back in 1995 and making it modern.

It introduces electronic trade licenses, automates the process of their issuance, and makes them unlimited. The terms and conditions for obtaining licenses are clearly defined.

The draft law provides for the following.

1) The procedure for obtaining licenses is simplified and the transition to an electronic form instead of a paper license is proposed;

2) perpetual licenses are introduced for all types of business activities subject to licensing;

3) for the license for the right to retail sale of alcoholic beverages, tobacco products, liquids used in electronic cigarettes, as well as for the right to store fuel that is not sold to other persons and is used exclusively for own consumption and/or industrial processing, an automatic procedure for obtaining licenses within one business day after the day of receipt of the application for a license to conduct the relevant type of economic activity is introduced;

4) the structure and procedure for administering state registers in the field of state regulation of production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes, and fuel are being improved;

5) licensing of tobacco cultivation and fermentation of tobacco raw materials is introduced to prevent illegal production of tobacco products;

6) the cost of licenses for the right to conduct the relevant type of business activity and the amount of fines for violation of the requirements of this Law are reviewed with reference to the minimum wage determined by law as of January 1 of the reporting (tax) year.

Yaroslav Zheleznyak, MP

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