According to the results of 2025, the tobacco industry paid about UAH 177 billion in taxes to the consolidated budget of Ukraine, which is 7% of all revenues and UAH 42 billion more than in 2024. This was reported by the Ukrtyutyun association on March 3.
Of this amount, almost UAH 134 billion is accounted for by excise tax (42% of all excise tax revenues for the year), including UAH 11 billion from excise tax on retail sales of tobacco products (about 58% of this type of tax). The taxes paid cover the annual state expenses for financing such structures as the National Police, the Prosecutor General’s Office, NABU, SBI, BEB, SAP and the Foreign Intelligence Service.
Ukrtyutyun member companies provided over $166 million in foreign exchange earnings from exports, and the total volume of investments in the economy exceeded $2 billion. The industry supports about 100,000 jobs, 97% of which are in related areas.
The association’s general director, Natalia Fesiun, noted that, despite the war, the industry remains a stable employer and source of budget revenue, but faces significant risks due to strict tax and regulatory policies that stimulate the development of the “shadow” market.
According to Kantar Ukraine, in 2024–2025, the share of illegal cigarettes was 16% of the market, due to which the budget received UAH 21.9 billion less in 2024 and UAH 26.5 billion in 2025. In addition, legal cigarette sales decreased by 6% in 2024 and by 15% in 2025 compared to the previous year.
The Ukrtyutyun Association unites the largest legal producers of tobacco products in Ukraine and represents their interests before state authorities, coordinating the joint activities of market participants.
