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?

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