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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

NEW CORRIDOR COMES TO DEAD END At least for brewers

13 November, 2012 - 00:00
There are no technical problems, but economic factors could DAM the flow of beer

Introduction of new hryvnia corridor will cause up to Hr 10 million losses at Mykolaiv’s Yantar brewery. According to the enterprise’s managers, hryvnia devaluation could eat up the plant’s turnover funds in the immediate future.

Until recently Yantar was one of the few stably working enterprises in Mykolaiv oblast. It regularly paid its taxes and other obligations to the state. Plant Financial Director Olha Bocharova told The Day that during the first six months of 1998 Yantar paid Hr 6 million in VAT, Hr 3.3 million in excises, Hr 1.2 million in payroll tax, etc. The plant planned to raise its production capacity to 70 million liters of beer by the end of the year. However, edicts, laws, and other legislative acts, recently passed under the cover of protecting the domestic producer may force the plant to shut down. Tripled excise tax and 2%-100% fees on raw materials produced outside Ukraine provoke the plant to increase its factory prices by at least 50%, which could lead to an unpredictable beer production decline and the plant’s shutdown.

The situation was discussed at a staff conference which adopted appeals to various authorities demanding the hryvnia not be allowed to fall below Hr 2.50 to the dollar, canceling fees on raw materials used in domestic manufacturing, reducing excise taxes, and reconsidering other unbearable taxes. In particular, the appeal read: “Yantar shutdown will be a disaster not only for the plant’s employees, but also for 5,000 of our co-producers, who will lose their jobs. Budget revenues will lose the millions of hryvnias we regularly pay as taxes.”

 

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