The rise in price of tobacco products is inevitable.
An increase in excise taxes on tobacco products is expected in Ukraine
This is reported by the publication “RBC-Ukraine”.
The corresponding bill (No. 11090) was adopted by the Verkhovna Rada on December 4, and on December 9 the document was sent to President Volodymyr Zelensky for signature, where it is still located.
According to the deputy head of the parliamentary finance committee Yaroslav Zheleznyak, due to the delay, Ukraine has already lost more than 700 million hryvnia.
How will the prices of cigarettes and “sticks” change?
If the law comes into force in its current version, the excise tax on cigarettes will be (per 1,000 pieces)
- in 2025 — 78 euros (+35.4%)
- in 2026 — another +5%
- in 2027 — another +4.8%
- in 2028 — -90 euros (+4.7%)
On TVEN, the excise tax will grow as follows:
- in 2025 — up to 70.4 euros (by 22%)
- in 2026 and 2027 — by +0.5%
- in 2028 – 72 euros (+1.2%)
For now, the excise tax on sticks and cigarettes is the same. However, in 2028, as explained by the executive director of the NGO “Center for Civil Representation “Life” Dmytro Kupyra, the difference will be 25%.
The publication notes that if in 2024 a pack of cigarettes cost 100 hryvnia, in 2028 it will cost 205 hryvnia.
In particular, Deputy General Director for Corporate Relations of Philip Morris Ukraine Mykhailo Polyakov confirmed that packs may increase in price by an average of 30 hryvnia. However, he assured that the increase will be gradual – the price will change once or twice a month until manufacturers completely pass on the increase in excise tax to the consumer.
Recall that the Verkhovna Rada approved as a whole the law on increasing the excise tax on tobacco products. The bill, in particular, provided for a gradual increase over four years the rates of excise tax on tobacco products, taking into account the minimum level determined by EU Directive 2011/64.