“Smoker’s Europe”: Ukrainian cigarette lovers will be the first to experience European prices
27 November 2024 15:59
The European Union requires Ukraine to revise excise taxes on tobacco products to bring them in line with European standards. This is stated in the report of the European Commission on the EU enlargement package for 2014, "Komersant Ukrainian" reports
Currently, the excise tax rate in Ukraine is about 59 euros per 1000 cigarettes, while in EU countries this figure exceeds 90 euros, and in some places it reaches 170 euros.
The increase in tobacco prices is part of Ukraine’s commitments to harmonize its national legislation with European legislation. According to the EU directive, in 2025, excise taxes on cigarettes in Ukraine should reach EUR 90 per 1,000 packs, but due to the devaluation of the hryvnia, they will be EUR 70 at that time. Therefore, it was decided to gradually increase the excise tax to EUR 90 by 2028.
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The draft law
The Parliament has already voted in the first reading of the government’s draft law No. 11090, which provides for a gradual increase in excise taxes by 2028.
The draft law proposes to establish new excise tax rates on tobacco products starting from January 1, 2028, based on the minimum level set by Directive 2011/64/EU.
The excise tax on cigarettes will be pegged to the euro, not the hryvnia. In 2025, the excise tax will increase by 23%, and in 2026-2028 it will grow by 5% per year.
It is expected that the implementation of the draft law will result in an increase in budget revenues in 2025 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, with the price of a pack likely to exceed UAH 170 within four years.
The cost of a pack of cigarettes is expected to rise to:
- uAH 127.4 in 2025
- 142.1 UAH in 2026;
- 155.8 UAH in 2027;
- 173.6 UAH in 2028.
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