The Verkhovna Rada of Ukraine adopted a decision to increase the excise duty on tobacco products. This means that next year the price of a pack of cigarettes will increase by 40 hryvnias. The draft law was supported by 237 people’s deputies, about what reported People’s Deputy Yaroslav Zheleznyak.
“Next year, a pack of cigarettes will increase by about UAH 40. Maybe more, since excise taxes will be tied to the euro by this law and will gradually approach the minimum EU requirements in terms of volume.”, he noted.
The main goal of the draft law is to gradually increase the specific excise tax rates on cigarettes to the level established by the EU Council Directive. By 2028, the excise tax should reach 90 euros per thousand cigarettes, while in 2025 it will be 78 euros. Currently, the excise tax is about 56 euros per thousand cigarettes, which is equivalent to 2,516.54 hryvnias.
Also, the excise tax on electrically heated tobacco products (TVEN) will gradually increase. In 2025, it will reach 70.4 euros per thousand pieces. This is 9.7% less than the excise tax on ordinary cigarettes. By 2028, this indicator will increase to 72 euros.
The introduction of the excise tax in euros is aimed at avoiding the impact of inflation, as well as at improving the administration of the tax. Draft Law No. 11090 provides for a gradual convergence with European standards, in particular, an increase in excise taxes on all tobacco products, with the exception of some adjustments for electric heating products.
