This is reported by RBK-Ukraine citing Member of Parliament Yaroslav Zheleznyak on Telegram. According to Kontrakty.UA,
based on his information, project No. 11090 was supported by 237 deputies in the second reading.
"Next year, a pack of cigarettes will increase by about +40 UAH. It may be more, as the excise taxes will be tied to the euro and will gradually approach the minimum requirements of the EU," the deputy wrote.
At the same time, senior economist at the Center for Economic Strategy Yuriy Hayday noted that the price increase will be less.
"I see some completely strange figures being thrown around, and no one is verifying them, so I will write. Cigarettes will not increase by 40 UAH per pack next year due to the rise in excise taxes, but rather by 20-25 UAH (including VAT)," Hayday predicts.
According to the law, by 2025 the specific excise tax rate on filtered and unfiltered cigarettes will increase by 23.4% - from 47 to 58 euros per 1000 pieces.
The minimum tax obligation for excise tax payment will rise by 23.9% - from 63.45 to 78 euros per 1000 pieces.
Justification of the law
As stated by the Ministry of Finance press service, since 2018, Ukraine has been implementing a plan to increase the excise tax on tobacco products by 20% annually. This plan was intended to ensure compliance with the EU directive's minimum excise tax obligation of no less than 90 euros per 1000 pieces of cigarettes by 2025.
"However, due to devaluation processes, particularly caused by the war, in 2025 the excise on cigarettes will only reach 70 euros. Therefore, the current schedule does not allow us to achieve the tax level set by the EU, which is why there was a need to revise the excise tax rates to gradually reach the minimum level established by the EU Directive by 2028," the statement reads.
The law provides for a gradual increase in the excise tax rates on cigarettes over 4 years to meet the minimum level established by Directive 2011/64/EU, considering our country's Euro-integration obligations. Additionally, excise tax rates for tobacco products will be determined in euros.
It is worth noting that changes to the Tax Code of Ukraine regarding the revision of excise tax rates on tobacco products foresee additional revenues amounting to 27.1 billion UAH (increase in excise tax rates on tobacco products - 22.6 billion UAH; VAT from the increase in the tax base (excise rates) - 4.5 billion UAH).
Smoking in Ukraine
In September-October 2024, 27% of respondents reported using tobacco or nicotine products (daily or not daily). The use of tobacco or nicotine products remains significantly more prevalent among men than among women. Specifically, among men, 39.5% use such products, while among women, it is 17%.
Cigarettes in Ukraine are increasing in price by approximately 20% per year. According to State Statistics, in October 2024, premium-class cigarettes cost 113.7 UAH per pack. In December of last year, they were priced at 96.2 UAH per pack.