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Tax Administration Proposes Introducing Licenses For Production And Sale Of Spirit, Alcohol, And Tobacco (12:46, Tuesday, May 13, 2008)

The State Tax Administration has proposed introducing "licensing conditions" for production and sale of spirit, alcoholic beverages, and tobacco goods.

The State Tax Administration announced this in a statement, a text of which Ukrainian News obtained.

According to the statement, the STA is proposing to introduce licensing conditions for production of ethyl, cognac, and fruit-based spirit, alcoholic beverages, and tobacco goods; wholesale trade in ethyl, cognac, and fruit-based spirit; and wholesale and retail trade in alcoholic beverages and tobacco goods because of numerous cases of inauthentic information in statements and documents that subjects of business activity submit in their license applications.

The State Tax Administration is also proposing to improve the mechanism for regulating these types of operations.

The draft law entitled "On Amendments to the Law on State Regulation of Production and Circulation of Ethyl, Cognac, and Fruit-Based Spirit, Alcoholic Beverages, and Tobacco Goods," which the State Tax Administration drafted, defines the term "licensing conditions."

The draft law defines "licensing conditions" as a list of organizational, qualification, technological, and other conditions that must be met during the process of production and circulation of spirit, alcoholic beverages, and tobacco goods.

The draft law stipulates that licensing conditions and control over their observance are to be determined by a central government organ selected by the Cabinet of Ministers.

According to the draft law, the licensing organ is to issue licenses to a subject of business activity only if these conditions are met.

The draft law also provides for establishing the responsibilities for violation of the licensing conditions.

As Ukrainian News earlier reported, a mandatory condition for sale of spirit, alcoholic beverages, and tobacco goods in Ukraine is purchase of a wholesaling license, which costs UAH 500,000.



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