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UKRAINE: Obolon attacks tax hike proposals

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Ukraine's second-largest brewer Obolon has criticised its government's plans for a tax hike on beer of almost 26%.

Obolon, which has a 29.8% share in Ukraine's beer market, said an increase in the tax on beer would further hit demand for beer in the country.

Ukraine's beer market grew by 25% last year but this year growth is expected to slow to 15%.

"Russia once tried to increase beer tax and it seriously affected its producers," the company told just-drinks today (20 October).

"In Ukraine, we now witness a decline in the growth rate of the beer market and an increase of the beer tax will only aggravate the situation. It is likely to harm small producers, the number of which keeps decreasing."

Obolon said Ukraine's government hopes of boosting its revenues with a hike on the tax on beer would merely hit the profits of brewers, which in turn would reduce corporate tax receipts.

The brewer accounts for over 83% of beer exports from Ukraine, reaching 25 countries in the CIS, Europe and Asia.


Sectors: Beer & cider

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