In 2018, the excise tax increased from 12 to 15.5 hryvnia hryvnia.
Ukrainians have reduced consumption of tobacco products. In 2017 they smoked 67 billion cigarettes, which is 14% lower than a year earlier. Such data are cited by the Ukrainian centre for tobacco control NGO “Life”.
A key reason for the drop-down trend, experts believe a significant rise in prices of cigarettes due to increase in excise duty. So, from January 1, 2017 a specific excise tax on tobacco products increased by 40%.
It is noteworthy that while the reduction in the number of merchants has not led to a reduction in budget revenues, which was predicted by many analysts. On the contrary, to the Treasury last year from tobacco excise taxes received 39.9 billion UAH. – 20% more than in 2016.
We will remind, on December 7, 2017, the Verkhovna Rada approved the multi-year schedule to further increase excise taxes on tobacco products. On average, the tax burden will grow annually by 20% until you reach the minimum European levels – 90 euros for 1000 pieces. Thus, at the current exchange rate of the hryvnia pack of cigarettes in Ukraine to rise to about 90-100 UAH.
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