The Cabinet of Ministers plans to approve a bill providing for an increase in the excise tax on tobacco products. Higher tax rates could kick in as early as July this year. This was announced by Deputy Chairman of the Tax Committee of the Verkhovna Rada Yaroslav Zheleznyak.
► Read page “Ministry of Finance” on Facebook: main financial news
“A slight increase and a transition from rates in hryvnia to euros is expected. From July 1, 2024,” Zheleznyak noted.
The bill proposes to gradually increase the excise tax rate for tobacco to the minimum regulatory value in force in the EU.
So, according to EU directives, the general excise tax the tobacco tax must be at least 60% of the weighted average retail price of a pack of cigarettes and at least 90 euros per 1000 cigarettes. Currently in Ukraine this tax is about 60 euros per 1000 cigarettes.
According to the Ministry of Finance, the implementation of the bill will increase revenue to the state budget:
- in 2025 – by about 621 million UAH, in 2026 – by about 5 billion UAH, in 2027 – by about 9.38 billion UAH, in 2028 – by about 13.85 billion UAH.