Cigarette prices will rise: Rada raises excise taxes
4 December 14:52
Today, on December 4, the Verkhovna Rada passed a law raising excise taxes on tobacco products. Cigarettes will rise in price by 40 hryvnias. This was announced by MP Yaroslav Zheleznyak, Komersant ukrainskyi reports.
Draft Law 11090 was supported in the second reading by 237 MPs.
“Next year, a pack of cigarettes will rise by about 40 UAH. Maybe more, as this law will peg excise taxes to the euro and gradually approach the minimum EU requirements,” the MP wrote.
According to the law, in 2025, the specific excise rate for filter and non-filtered cigarettes will increase by 23.4%, from 47 to 58 euros per 1000 pieces.
The minimum tax liability for excise tax will increase by 23.9% – from EUR 63.45 to EUR 78 per 1000 units.
In addition, the rates will be calculated in euros instead of hryvnia.
The document proposes to establish a gradual increase in excise tax rates on tobacco products in the following years.
In 2025, the excise tax will increase by 23%, and in 2026-2028 it will grow by 5% per year.
The cost of a pack of cigarettes is expected to increase to:
- uAH 127.4 in 2025
- 142.1 UAH in 2026;
- 155.8 UAH in 2027;
- 173.6 UAH in 2028.
It is expected that the implementation of the draft law will result in an increase in budget revenues in 2025 in the amount of about UAH 612 million, in 2026 – UAH 5 billion, in 2027 – UAH 9.3 billion, and in 2028 – UAH 13.8 billion.
This increase will lead to a significant rise in the price of cigarettes in the country – the price of a pack may exceed UAH 170 within four years.
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