Increase in excise taxes on cigarettes: the bill passed the first reading
Kyiv • UNN
The Verkhovna Rada supported in the first reading the bill on raising excise taxes on tobacco products, while the excise tax on cigarettes is tied to the euro exchange rate and should increase by 23% in 2025, then by 5% annually in 2026-2028, in order to reach the EU minimum level by 2028.
The Verkhovna Rada supported in the first reading the bill on raising the excise tax on tobacco products. The excise tax on cigarettes is pegged to the euro, not the hryvnia, and it is assumed that in 2025 the excise tax will increase by +23%, and then in 2026-2028 it will be +5%. This is reported by UNN with reference to people's deputy Yaroslav Zheleznyak and the card of the draft law No. 11090.
Details
"The parliament supported in the first reading No. 11090 on raising the excise tax on tobacco products. As a basis - 249. to establish from 01.01.2028 new amounts of excise tax rates on tobacco products, taking into account the minimum level defined by Directive 2011/64/EU," Zheleznyak said.
According to him, the excise tax on cigarettes is tied to the euro, not the hryvnia, and it is also assumed that in 2025 the excise tax will increase by +23%, and then in 2016-2028 it will be +5%.
"This year, the increase will only be in the event of devaluation. The implementation of the draft law will result in an increase in budget revenues due to additional revenues of excise tax on tobacco products in 2025 in the amount of about 612 million hryvnias, in 2026 – 5 billion hryvnias, in 2027 – 9.3 billion hryvnias, in 2028 – 13.8 billion hryvnias," Zheleznyak added.
Addition
As already mentioned, the excise tax on tobacco, cigarettes, cigars, cigarillos, Twain will be pegged to the euro, not to the hryvnia. In particular, the excise tax on unfiltered cigarettes, filtered cigarettes and cigarillos should reach 90 euros per 1,000 units by 2028.
However, in the period from July 1 to December 31 of this year, it is assumed that the rate for unfiltered cigarettes, filtered cigarettes and cigarillos will be 64.45 euros per 1000 pieces, in the period from January 1 to December 31, 2025 - 78 euros per 1000 pieces, from January 1 to December 31, 2026 - 82 euros per 1000 pieces, and in the period from January 1 to December 31, 2027 - 86 euros.
For Twain, the rate this year will be 63.45 euros per 1000 units, in 2025 - 70.40 euros, in 2026 - 70.80 euros, in 2027 - 71.14 euros, and in 2028 - 71 euros.
Recall
The decision to gradually increase excise taxes on cigarettes to the minimum level in the EU until 2028 was passed by the relevant parliamentary committee, the Verkhovna Rada is recommended to adopt the relevant bill as a basis.
