Tax and accounting insights for Ukraine
18.07.24
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Hetmantsev supports the introduction of an excise tax on sugary sodas

According to MP Yaroslav Zheleznyak, the Tax Committee of the Verkhovna Rada of Ukraine has supported the draft law No. 9032-1 on the introduction of a tax on sweet water starting next year.

In favor - 16
Abstentions - 4
Against - 1

The MP did not vote, explaining that he did not understand how this rule could be administered properly.

The draft law proposes to amend the Tax Code of Ukraine to classify water, including mineral and carbonated water, with sugar or other sweetening or flavoring substances as excisable goods and to set a specific tax rate of EUR 0.1 per 1 liter of drink.

According to the Ministry of Economy's calculations, the price of beverages will increase by about UAH 4 per liter.

But the calculations are not so simple. According to Zheleznyak, there was the first (basic) option. "It was 10 UAH for 25 grams of sugar per liter. Thus, if a bottle of Coca-Cola contains 110 grams of sugar per liter, the tax amount will be 44 UAH. That's right, it's 2.5 times higher.

And it is this draft law that the Ministry of Finance calculates the budget revenues of UAH 3.3 billion. Do you remember?

Then there was an alternative draft law with 0.1 euros per liter. That is, for a bottle of Coca-Cola, it is no longer 44 UAH, but about 4.5 UAH of tax per liter. That is 10 times less than in the first basic law.
And according to the letter from the Ministry of Finance, this bill should bring in 7.5 billion hryvnias," the MP writes.

Yaroslav Zheleznyak, MP

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