The Verkhovna Rada has approved the Presidential Law, which abolishes the state monopoly on alcohol production since July 1, 2020. 284 MPs supported the bill.

“Due to the monopoly, 55% of the market remains in the shadows. The budget loses about UAH 10 billion in taxes every year,” said Prime Minister of Ukraine Oleksiy Honcharuk.

The Prime Minister emphasized that the draft law abolishes the state monopoly on alcohol production from July 1, 2020, including as a medicinal product, as well as for medical and veterinary purposes. Thus, from July 1, enterprises of different forms of ownership will be allowed to produce and sell spirits after obtaining a license. To encourage grain processing and carbohydrate production in Ukraine, including bioethanol, the legislation establishes temporary restrictions on the import of spirits into Ukraine for four years until 1 January 2024. The Prime Minister of Ukraine stressed that the Government is now focused on developing and approving the most stringent licensing conditions.

The objective is to create transparent and clear mechanisms for controlling the production of spirits with using state-of-the-art technology. Among those are electronic counters, online transfer of information to the bodies of the State Fiscal Service, system of electronic tagging; electronic excise tax invoice on spirits and alcoholic beverages production, video surveillance and electronic system designed to control the movement of spirits and alcoholic beverages. This will allow to completely eliminate the human factor, and as a result - corruption and abuse.