President Volodymyr Zelensky signed Law No. 11090 on increasing excise taxes on tobacco products from 2025. This was reported by the First Deputy Chairman of the Tax Committee Yaroslav Zheleznyak.
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What is known
“It has not been published yet, but I already have confirmation of the fact from two sources ‘from international financial institutions’ and the government,” he noted.
Zheleznyak emphasized that the law was signed with a delay of more than 100 days. As a result, since January 1, the budget has lost more than UAH 2 billion in revenue.
Zheleznyak recalls that the document had transitional provisions for entry into force on January 1, 2025. “And today is already March 22. How should businesses now calculate their work based on excise taxes?” the deputy noted.
Proposing the Bill
Bill No. 11090 provides for the transfer of excise tax rates on tobacco products from hryvnia to euros, reaching the minimum EU level in excise tax on cigarettes (EUR90 per 1000 cigarettes) due to a gradual increase in the calculation of excise tax on tobacco products taking into account the exchange rate
It is expected that in 2025 the excise tax on tobacco products will increase by +23%, and then in 2026-2028 it will be +5%.
In addition, after the peg to the euro (from July 1, 2024 to December 31, 2024), the excise tax on filter cigarettes per 1000 pieces will be EUR47, in 2025 – EUR58, in 2026 – EUR61, in 2027 – EUR6.
According to the Ministry of Finance, this will increase state budget revenues by UAH 0.6 billion in 2025, by UAH 5 billion in 2026, by UAH 9.4 billion in 2027, and by UAH 13.9 billion in 2028.
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