The new excise tax rate will come into effect on April 1.
The State Tax Service of Ukraine reported that from the beginning of next month, all manufacturers and importers of tobacco products must use a new coefficient when calculating the minimum excise tax. The coefficient will be 1.1 from April 1 and will be valid until the end of 2025.
This was reported by Focus with reference to materials from Liga.Zakon.
This decision was made based on an analysis of excise duties on tobacco products for the past year. It turned out that last year “the share of tax liabilities in the average weighted retail price of cigarettes was 55.8%, which is below the established level of 60%.”
The increase in the coefficient for calculating excise tax on tobacco products is expected to lead to a new price hike. But it is not yet known how much the average price of a pack of cigarettes will increase.
Let us recall that the rise in price of tobacco products is inevitable. Prices will rise in several stages over the next four years.