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And the crisis broke out: the Ukrainians began to smoke less

И грянул кризис: украинцы стали меньше куритьIn 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%.

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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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