The Cabinet of Ministers has decided to increase the excise fees for alcoholic beverages by 6.9% or UAH 2.72 to UAH 42.12 per liter of 100-percent spirit and for cigarettes by 6.9% or UAH 6.21 to UAH 96.21 per thousand cigarettes from January 1, 2011.

This is read in the Cabinet of Ministers resolution No.1533 of July 28.

With its document, the government urged to publish specific excise fees and minimum tax liability on payment of excise fees for tobacco goods by July 31.

Besides, the government urged to publish excises for ethyl spirit and alcoholic beverages defined taking in account index of consumer prices - 106.9%.

The obligation is enshrined in the law "On excise fees for tobacco goods" and the law "On excise fees for ethyl alcohol and alcoholic goods."

Therefore, specific excise fee for filter cigarettes will be increased from UAH 90 to UAH 96.21 per thousand cigarettes; for non-filter cigarettes - from UAH 40.25 to UAH 43.03 per thousand cigarettes; for cigars and cigarillos - from UAH 140 to UAH 149.66 per kilo; for tobacco, tobacco substitutes, homogenized tobacco, tobacco extracts and essences - from UAH 50 to UAH 53.45 per kilo; for smoking tobacco - from UAH 70 to UAH 74.83 per kilo; chewing and snuff tobacco - from UAH 20 to UAH 21.38 per kilo.

Floor tax liability on payment of excise fee for non-filter cigarettes will be raised from UAH 57.5 to UAH 61.47 per thousand cigarettes, for filter cigarettes - from UAH 150 to UAH 160.35 per thousand cigarettes.

The excise fee for strong wines and vermouths will be raised from UAH 2 to UAH 2.14 per liter, for sparkling and carbonated wines - from UAH 2.9 to UAH 3.1 per liter, cider and perry - from UAH 0.39 to UAH 0.42 per liter, spirit and alcoholic products - from UAH 39.4 to UAH 42.14 per liter of 100-percent spirit.

The calculation was based on the excise fees for spirit and alcoholic products that will take effect from September 1, 2010.

The Cabinet of Ministers also indexed the excises that are currently in force and will be in force until September 1, 2010.

Representative of the sector told the Ukrainian News agency that indexation of excise fees had to be held in compliance with the law, but from January 1, 2011, fees calculated on the basis of September 1 fees will take effect.

As Ukrainian News earlier reported, the Verkhovna Rada intends to increase the excise fee for spirit and distillery produce by 15.9% or UAH 5.4 to UAH 39.4 per liter of 100% spirit from September 1, 2010.