The first interview of Ales Struminsky to Ukrainian Media

10.03.2015
There was published an extensive interview with new General Manager of Ukraine Cluster Ales Struminsky in the leading business magazine Forbes.

 

There was published an the first extensive interview with new General Manager of Ukraine Cluster Ales Struminsky in the leading business magazine Forbes. In the article Ales highlights the following points:

- Unpredictability of government decisions is a challenge for the business in Ukraine. For example, over the past 12 months, the cigarette excise taxe was increased four times: in January, July and September last year, and again in January 2015. It is extremely difficult to plan anything in these conditions.

- The major changes for our business – the unification of taxation for filtered and non-filter cigarettes and the five percent sales tax were made without enough analysis, any elasticity study of sufficient market data and - more importantly - without any discussion with the industry – manufacturers, experts and market analysts.

- The sustainable tax collection is based on predictable and gradual tax rate increase.Tax increase of almost 130% for non filter cigarettes in only one step means a shock that will lead to increase of illicit market.

- In October 2014 the volume of illegal sales in Ukraine did not exceed 6%. In the next months this figure could easily double. In January 2015, we already discovered a pack of counterfeit non-filter “Prima” in Western Ukraine. Illegal manufacturers reacted to legislative changes in just one month.

- Ales Struminsky calls for a balanced approach regarding non-filter taxation.

In the publication Ales also described challenges related to currency devaluation, difficult situation in Eastern Ukraine and other cluster markets (Azerbaijan, Armenia, Georgia and Moldova).

Full text -Forbes.ua