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In Ukraine, sharply rose cigarettes

В Украине резко подорожали сигаретыCigarette prices in Ukraine grew by 16.2%.

In Ukraine the prices on tobacco products in January-may 2017 increased to 16.2%, significantly higher than the rate of inflation for this period.

This is evidenced by the according of the state statistics.

The main reason for the rise in price was the increase from January 1, 2017, the rates of excise tax on tobacco products. If in 2016 the minimum excise tax on a pack of 20 cigarettes was of 8.52 UAH. in 2017 -11,92 UAH. This is already reflected in the price tags at retail.

According to GFS, on June 15, 2017, the price of cigarettes has increased, and some brands have risen even more than demanded by the tax burden. If, according to the preliminary calculations of experts, the average appreciation was supposed to be 4, 13 UAH./pack, but some sellers are glued to the price tag of just 5 UAH.

However, Ukrainians benefited from it, officials warn. Cigarette sales fall; in January-may 2017, according to GFS, it was sold 20 billion units, which is 6 billion less than the same period last year.

Receipts in the budget from tobacco excise taxes in January-April 2017 increased by 2.6 billion UAH. to 12.7 billion.

“The practice of the annual increase in excise tax on cigarettes by 40%, which was implemented in 2016 and 2017, has proved its effectiveness: people are Smoking less, and the budget gets more and more”, — said the head of sector of control over tobacco of the Ukrainian Institute for strategic research of the Ministry of health Konstantin Krasovsky.

According to its European commitments, Ukraine has to increase the average excise burden to 90 euros per 1,000 cigarettes. Now this tax is only 596 UAH. (20 euros).

“Therefore, in the future the government will increase the rates of excise duty and tobacco companies, respectively, will be perepisyvat cigarette prices”, — concluded Konstantin Krasovsky.

The shadow market in Ukraine does not exceed 1-3%, of the tobacco companies. The fact that the Ukrainian cigarettes are so cheap that we are simply not profitable to bring in illegal products nor from Russia, nor Belarus, nor Moldova, say the fighters with Smoking. The problem lies in the illegal export of Ukrainian cigarettes in the EU. Ukraine is recognized as the world customs organization, the country cigarette smuggler No. 2 in the world.

Although this does not prevent the SFS systematically “catch” on the shelves of Ukrainian illegal cigarettes on millions of hryvnia.

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