In Ukraine will rise again cigarette

By 2025, the excise duty on cigarettes will increase by almost 30%.

The Verkhovna Rada adopted amendments to Tax code of Ukraine, which provides for the increase in the cost of excise taxes on tobacco products.

The adoption of the bill voted 252 deputies.

In particular, the project envisages gradual to 2025 the increase of excise tax rates on tobacco products and the minimum excise tax obligation for payment of excise duty from tobacco products, namely in 2018 11.2% and an additional 16.7% (that is, taking into account the previous indexation on average 29.7%).

In subsequent years, provided the increase of 20% to a level equivalent to 90 per thousand pieces (now the minimum tax liability for cigarettes in Ukraine is 20 euros per thousand pieces – EP).

In addition, the draft stipulates that from 1 January 2025 will be subject to the requirement of the EU Directive on the structure and rates of excise duty applied to tobacco products regarding the share of excise in average retail selling price of cigarettes of at least 60%.

“This mechanism is introduced to determine such prices”, – stated in the explanatory Memorandum.

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