The Cabinet of Ministers of Ukraine has refined the procedure for determining the maximum production capacity of equipment for the production of ethyl alcohol and bioethanol, according to the industry publication SEEDS.
The government adopted the relevant resolution on 23 September 2026. The new rules are intended to ensure a more accurate and technically sound calculation of equipment capacity. This figure is used to determine the guaranteed excise duty liability for producers of alcohol and bioethanol.
In particular, the calculations now require the actual capacity of process equipment to be determined and taken into account. The regulations also clarify which modifications to equipment should be regarded as a change to its maximum capacity. The Government has established a mechanism for carrying out the updated calculation and has provided for the possibility of taking into account permissible errors in actual capacity arising from the specific features of the production process or the characteristics of measuring equipment.
One of the most significant changes is the authorisation for the actual capacity of process equipment to deviate from the calculated maximum capacity by up to 3 per cent inclusive. Furthermore, the procedure for applying coefficients relating to the cleaning and disinfection of process equipment has been clarified. When carrying out calculations, account will be taken of the possibility of carrying out such work during scheduled production stoppages.
The government explains the need for these changes by citing the technological characteristics of the alcohol industry. The actual capacity of the equipment may be influenced by the characteristics of the raw materials used, auxiliary materials, seasonal variations in energy source parameters and other factors, which do not in themselves imply a change in the plant’s maximum technical capacity.
Thus, the updated procedure must take into account both the technical specifications of the equipment and the actual technological conditions of ethyl alcohol and bioethanol production.
The mechanism for determining maximum capacity was introduced by Cabinet of Ministers Resolution No. 350 of 28 March 2025, implementing amendments to tax legislation concerning the specific features of excise duty on ethyl alcohol and bioethanol. The calculation is carried out by an authorised state body on the basis of the technical and technological parameters of production.
According to the government’s assessment, updating the methodology should increase the predictability of operating conditions for producers of alcohol and bioethanol and ensure a more accurate determination of the indicators used to calculate excise duty liabilities.