Imperial Tobacco welcomes cabinet's proposal to revoke bottom retail prices of cigarettes
Imperial Tobacco in Ukraine, one of the largest cigarette producers, believes that plans of the government to revoke the bottom retail prices of cigarettes imposed by the Ukrainian parliament in December 2015 is a pro-European decision.
"We hope that parliamentarians would amend the Tax Code of Ukraine soon, and practice of making anti-European decisions on the tobacco market would be left in the past," the company said in a press release.
Corporate and Law Director at Imperial Tobacco in Ukraine, Moldova and the Caucasus countries Oleh Strekal said that along with the implementation of the European standards, the decision of the cabinet has a positive economic effect. The increase of the ad valorem tax by 3 percentage points this year would allow having an additional UAH 600 million of budget revenues.
On February 11, 2016, the cabinet decision to revise excise duties on tobacco (the increase of ad valorem element from 12% to 15%). The cabinet also recommended that the requirement on the bottom prices of cigarettes passed in violation of Ukrainian law by the parliament in December last year is revoked.