Tuesday 17 November 2009

Tobacco" excise stopped

The threat of smuggling has been convincing fight against smoking ...
November 11 President Viktor Yushchenko vetoed the passage of the Verkhovna Rada of Ukraine on October 22 Law "On rates of excise duty on tobacco products." This law, as we have been provided for an increase in ad valorem excise rate (tax rate as a percentage of turnover realization of the goods) from 20% to 36%. And if the President signed into law, the increase would have a third this year.
But Viktor Yushchenko vetoed it. For many, such a step head of state was a surprise. Recently a group of deputies, experts and NGO representatives stated that "the President's decision is of great surprise, because it is inconsistent with its stated course of the nation's health and the European integration of Ukraine".
Yushchenko recalled its position 2 years ago, when, how, like the Coalition of NGOs and Initiatives "For a smoke-free Ukraine," President of the National Forum "Healthy Nation" announced "Seven initiatives of the President of Ukraine to improve the health of the Ukrainian people." The first of these initiatives was to "reduce the harmful effects of smoking on health. To achieve this, proposed a set of activities, the first of which was an increase in excise taxes on tobacco products.
They ask each other fighters against smoking, and why the President signed all previous laws on raising excise taxes on tobacco products, but did not want to do now?
Sam Viktor Yushchenko explained his decision in the first place the desire to avoid the smuggling, which warned tobacco companies. "With the passing of the amount of excise tax in the price of a pack of cigarettes without a filter will be approximately 4,3 times higher than in Russia, and cigarette filters - 3,3 - 3,8 times ... - it is in the proposals of the President to law, returned to the Verkhovna Rada. - This creates the risk of income in Ukraine contraband products.
This agrees with President Boris Kushniruk economic expert. Speaking for the restriction of smoking areas, Kushniruk, however, said that with the excise should be cautious. "Provoke a sharp increase in smuggling very easy ... Excise tax must be applied carefully so as not to destroy domestic production", - said he was "Day".
But the President, except for contraband, and for experiencing a decrease in revenue to the state budget, reducing the volume of production and release of workers in the sector, which, according to the head of state, possibly with the next increase in excise duties.
In the Coalition for a smoke-free Ukraine ", in turn, give data on which in 2000-2008 years the production of cigarettes in Ukraine increased from 59 billion to 130 billion pieces. But the number of employed in tobacco factories during this time, according to Goskomstat, decreased from 6156 to 4139 people ...
But the main thing that is contrary to veto the law enunciated by the rate of recovery of the nation, I am sure the head of the National Board of Health under the President of Ukraine Mykola Polishchuk. "For me it was strange that the President vetoed the law - he admitted to reporters recently. - The more that I knew in advance about the intentions of signing.
According to Polishchuk, every day from tobacco kills 300 people every hour - 11 active and 1 passive smokers. "Compare the current epidemic of influenza, during which three weeks less than 200 people died, so how many people die every day from smoking" - he said. Polishchuk argues that the price of cigarettes for our people is of great significance. "Young people and adolescents can be influenced only by the price, because the discipline they know how - emphasizes the Chairman of the National Health. Due to this, in Ukraine for four years managed to reduce the number of smokers from 41 to 31%, according to Polishchuk. This, he said, more than a million people ...
Meanwhile, ex-deputy minister of economics and advisor to the First Vice-Prime Minister Vladimir Ryaboshlyk believes that Viktor Yushchenko still sign the legislation to raise the excise taxes.
"I believe that the services that are prepared for the President of this decision, entered the head of state in error", - he said at a press conference. According Ryaboshlyka, such actions "are not joined with the President's position on European integration". "He will understand the situation, and still sign the law. I'm sure "- he said.
Such confidence is not shared Ryaboshlika MP from the BYuT Oleg Lyashko. In his view, the President vetoed the law is absolutely consciously. Moreover, Lyashko accused the head of state in lobbying the interests of the tobacco business.
"According to my information, for the veto of this law on account of structures that hold the election campaign of the presidential candidate Yushchenko, has been transferred more than five million dollars, - said Lyashko. - We have information, we now verify that we are talking about the transfer of funds from tobacco companies to various charities in some way involved in the electoral campaign of Viktor Yushchenko. However, I must admit that five million dollars - this is not the last sum, which was agreed. There is reason to consider the information that the planned additional charges for veto this law. "
Byutovets promised to tell the whole story in more detail as soon as more evidence. Meanwhile, refuting fears that Yushchenko concerns the reduction of budget revenues, Lyashko end of the year from excise taxes on tobacco products predicts about 9 billion hryvnia. And in 2010 - about 15 billion hryvnia ...
To have entered the budget even more, and cigarettes became more expensive and therefore not as accessible, the head of the Coalition for a smoke-free Ukraine, Sergei Gonchar, on behalf of 50 NGOs appealed to the President demanding yet to change its position. For hedging and appealed to the Verkhovna Rada to take into account some of the comments of the President, to make this bill for consideration and vote again.
However, this will be problems, sure Lyashko. The President has no right to withdraw a veto, he said, so the only correct way - that consideration of the law again in Parliament. Indeed, as noted by the deputy, the Verkhovna Rada will be unable to overcome a veto.
"There is no hope that the parliament pick up 300 votes. Also, we can not take into account the amendments of the President, because, according to regulations still need 300 votes to pass this law after the veto "- the politician added.
According to him, the only option - is to send legislation to committee, and decide in the new edition. "Such a proposal, we will articulate on Monday at the conciliatory council", - said the People's Deputy.
But the paradox is that, without waiting for the decision of the President, from November 1, tobacco companies have increased the maximum retail prices for some brands of cigarettes, as already written "The Day". Should we expect them to decline to veto the law, is still unknown. The professional associations and the tobacco companies to comment on this matter shall refrain ...
General Director of the Ukrainian association of manufacturers of tobacco products "Ukrtabak Valentina Khomenko said" Day ", that Viktor Yushchenko had every reason to veto the law.
"Unfortunately, in recent years, violations of basic laws for the regulation of tax and budget relations have acquired a systematic character and principles of regulatory policy set out in the Law of Ukraine" On the basis of state regulatory policy in the sphere of economic activity ", generally ignored when making regulatory instruments - says Khomenko. - In a country where there is a systemic economic crisis, and that the rating of purchasing power is the penultimate place in Europe and one of the lowest level of minimum wages and GDP per capita tax increase seven times in little more than one year is a manifestation of economic shortsightedness and irresponsibility.

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