Monday, May 31, 2010

Coal Subsidies

"KYIV, May 31 /UKRINFORM/. The Cabinet of Ministers decided to allocate 6.2 billion UAH (1 USD - 7.93 UAH) to partially cover the costs included in the value of coal produced by state-run enterprises in 2010."

http://www.ukrinform.ua/eng/order/?id=188756

Why does the production of coal needs to be subsidized?

Wednesday, May 26, 2010

Rollercoaster

The Ukrainian stock exchange first loses about 10% each days for the last couple of days but today is temporarily stopped because it increases more than 15% - hadn't gambling been made illegal in Ukraine?

Sunday, May 23, 2010

More on Prices and Excise Taxes

Also Prime Minister Azarov claims increasing excise taxes will not translate in higher prices

""We will keep out a sharp rise in prices," the Prime Minister said. A rise in excise duty will not cause a jump in petroleum and mineral water prices, but a price of tobacco products may slightly go up, Azarov said."

http://www.kyivpost.com/news/business/bus_general/detail/67475/

Another party of regions official, however claims

"Party of Regions’ member of parliament Yuriy Miroshnychenko says that the recent increase of excise duty on alcohol beverages will hit two targets – economic benefits and decrease of alcoholism in Ukraine."

http://www.kyivpost.com/news/nation/detail/67470/

Will not the decrease of alcoholism only happen if the increase in excise tax leads to an increase in the price the consumer of alcohol has to pay?

Saturday, May 22, 2010

Excise Increase without Price Increase?

The current government is trying to increase tax revenues by increasing excise taxes but wants to avoid price increases

"Vice Prime Minister for Economic Affairs Serhiy Tihipko rules out rise in the prices of goods due to the increase of excise on tobacco products and alcoholic beverages. "There will be no price increase," he said."

http://www.ukrinform.ua/eng/order/?id=188185

Of course, for price inelastic goods (like for example, tobacco and alcohol), companies will try to increase their prices and hence make the consumer pay, rather than decreasing their profits

The government's solution is simple:

"Anti-Monopoly Committee issued a warning to operators on the fuel market against non-objective hikes in gas prices in connection with the expected increase in the excise tax on those products, the watchdog’s chief Oleksiy Kostesev told journalists."

http://kyivweekly.com.ua/accent/news/2010/05/19/162734.html

Again, the AMCU seems to be playing a political role rather than being an independent regulator.

Wednesday, May 19, 2010

A Statistical Portrait of Ukrainians

The Kyiv Weekly has an interesting statistical portrait of Ukrainians


with info like

"Overall, Kyiv placed 9th among the largest distributors of junk mail in the world"

and

'in terms of per capita vodka consumption Ukraine occupies third place in the world after Russia and the U.S'