15:27 18.02.2016

EU opposes introduction of minimum prices of cigarettes

EU opposes introduction of minimum prices of cigarettes

Setting minimum prices for cigarettes goes against Ukraine's deep and comprehensive free trade area (DCFTA) commitments, according to a report of the Delegation of the European Union to Ukraine.

This commitment stems from the Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco, which applies across the EU.

"However, Ukraine is free to introduce a minimum excise duty on tobacco products, including cigarettes, for the purpose of protecting public health and raising tax revenues (Directive 2011/64/EU)," the delegation said.

As reported, the government plans to send a bill on the increase of ad valorem rate of the excise duty on cigarettes to 15% of largest retail prices with VAT in 2016 and on revoking the requirement to introduce minimum retail prices.

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