News
15.10.2009
Ukrspyrt: problems with VAT repayment and loan attraction make alcohol export unprofitable
The state-run Ukrspyrt spirit and distillery industry concern claims that it has become unprofitable for distilleries to export their products because of the problems with value-added tax repayments and loan attraction, the Ukrspyrt press service told Ukrainian News.
Export made alcohol producers reduce output over the last nine months, the press service said.
The Ukrspyrt companies can't compete with world's large alcohol operators because of outstanding VAT debts and inability to take loans, the press service said.
“Therefore, export for state-run distilling plants is direct erosion of working capital,” the press service said.
The government resolution on alcohol quotas for organic synthesis enterprises had cut total export of alcohol which domestic plants then used, under customs control, to make alcohol-free products.
Ethyl spirit output in January-September totalled 18 million decaliters, 5% or 0.93 million decaliters less than in the same period last year.
At the same time, spirit delivery to the domestic market increased by 3.3 million decaliters.
The concern generated consolidated revenue of UAH 19.9 million over the nine months 2009 (distilleries' revenue was estimated at UAH 45.7 million, losses UAH 25.8 million), according to Ukrspyrt.
Thirty-one plants reported losses.
The concern's accounts receivable decreased by UAH 54.3 million, while accounts payable by UAH 130 million.
Ukrspyrt planned to double export of alcohol in 2009, that is, to increase it by 5 million decaliters to 10 million decaliters.
Ukrspyrt incorporates 76 state-run distilleries producing 95% of alcohol in Ukraine.
The Ukrspyrt concern was set up in 1996.
Agro Perspectiva
