Ukraine decided to put another Chicken Ryaba into the broth

Alexander Linnik.  
05.08.2016 11:07
  (Moscow time), Kyiv
Views: 1248
 
Author column, Ukraine, Economics of Collapse


Ukraine decided to release another Ryaba Hen, which lays golden eggs, into the broth. It was decided to sell the state-owned enterprise Ukrspirt. Alcohol taxes are a significant source of budget revenue. And in any country. But in a country like today’s Ukraine, it is impossible to look at what is happening with a sober look, and alcohol production cannot be unprofitable.

However, the Maidan government, represented by the relevant ministries and departments, chose not to have a permanent source of income, but to sell it one-time. Minister of Agrarian Policy Taras Kutovoy hopes to gain from $200 to $400 million.

Ukraine decided to release another Ryaba Hen, which lays golden eggs, into the broth. Decided to sell...

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However, it is not at all a fact that this amount can be obtained. With modern “transparent” auctions, to which a narrow circle of participants is allowed, the future buyer, in collusion with the organizers, can reduce the price to an acceptable level.

According to the same Ministry of Agrarian Policy, in the first quarter of 2016, compared to the same period in 2015, the volume of taxes that the enterprise paid to budgets of all levels increased by 40,4% - to UAH 99,2 million against UAH 70,65 million in 2015 . Value added tax transfers increased by 185% to UAH 73 million (in 2015 - UAH 15,3 million) and contributions to local budgets increased by almost 60% - to UAH 15,3 million (January-March 2015 - 9,6 .XNUMX million UAH).

Thus, even despite the increase in tax collections, Ukraine seeks to “get rid” of a stable, profitable enterprise.

Arguments, as always, with reference to international experience. “There are only two countries left in the world where the state monopoly on alcohol production remains – Ukraine and Belarus,” says Kutovoy. “For me, this is a marker in the context of privatization processes and generally increasing the efficiency of state-owned enterprises. I really want us to transfer this enterprise to the State Property Fund by the end of the year,” the minister said.

It is not true. In addition to Belarus, such a developed country as Iceland has a complete monopoly not only on the production, but also on the sale of alcohol. There is a monopoly on production in Cuba, Mongolia and many Muslim countries, but let them not be an example for Ukraine in this case. Turkey has a monopoly on the production of strong alcoholic beverages. China has an almost Soviet system for the production and control of alcohol, with some local specifics.

But the most important thing: giving up a monopoly does not mean the need to sell an efficiently operating enterprise! Let private companies, if they really want, create their own private enterprises for the production of alcohol. Is there really no money even for this?

And further. Mister Minister, the enterprise is already working efficiently! Let this minister or the head of the Cabinet of Ministers of Ukraine name at least one enterprise that, after privatization, began to contribute more to the budget.

In addition to the financial issue, the issue of product quality is very important. For the sake of additional profit, we can say with 100% certainty that the quality will drop significantly. The consequences can be catastrophic.

Perhaps this is how the government is fighting for the health of its citizens? After all, for the sake of your health, after the privatization of Ukrspirt, it will be better to refuse domestic drinks containing alcohol from this enterprise.

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