The government will propose to increase excise taxes on tobacco products - MP
Kyiv • UNN
The government plans to adopt a bill to increase excise taxes on tobacco products, which should come into effect on July 1, 2024, and gradually increase to the EU minimum level by 2028.
The government plans to approve a bill that would increase the excise tax on tobacco products. This was reported by Deputy Chairman of the Tax Committee of the Verkhovna Rada Yaroslav Zheleznyak, UNN reports.
Details
The Cabinet of Ministers is planning to approve a draft law that would increase the excise tax on tobacco products starting July 1.
A small increase is expected and the transition from hryvnia to euro rates is planned. From July 1, 2024
The draft law envisages a gradual increase in the excise tax rate on tobacco products to the minimum level applicable in the European Union. According to EU directives, the total excise tax on tobacco should be at least 60% of the weighted average retail price of a pack of cigarettes and at least EUR 90 per 1000 cigarettes. In Ukraine, the current rate is approximately EUR 60 per 1000 cigarettes.
According to the Ministry of Finance, the implementation of the draft law will increase state budget revenues:
- in 2025 - by about UAH 621 million;
- in 2026 - by about UAH 5 billion;
- in 2027 - by about UAH 9.38 billion;
- in 2028 - by about UAH 13.85 billion.
