Beer Tax Triples in the Ukraine

Will the increased price of beer deter Ukrainians from drinking?

Photo Sasabune Omakase Modified: Flickr/erin/CC 4.0

According to Forbes, the price of beer in the Ukraine is about to skyrocket.

In an effort to boost revenues and seek bailout from the International Monetary Fund, the Ukraine has plans to nearly triple the excise tax of on beer. In US dollars, this will be an increase of around $0.30 per liter.

Supporters of this tax believe it will boost the economy, and anti-drinking groups insist that it will slow down the trend of alcoholism in the country. With no minimum age to buy beer and a low tax on the beverage, the Ukraine has kept this alcoholic drink relatively cheap and easy to buy. While beer is found in Kiosks, there is an age limit of 18 for vodka.

How will beer companies like Carlsberg A/S and Anheuser-Busch InBev be affected? There is a worry that the beer industry, which has been strong since the dissolution of the Soviet Union, might see a decrease in sales. If prices go up, people will be less likely to buy the products. Some experts expect the beer market to shrink by up to 25 percent with the addition of the tax. 

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