11:12 11.12.2017

Parliament increases excise duties for cigarettes by 29.7%

Parliament increases excise duties for cigarettes by 29.7%

Ukraine's Verkhovna Rada has passed amendments to the Tax Code of Ukraine on the provision of the balance of budget revenues in 2018, foreseeing the increase of the excise duty for tobacco products by 29.7%.

According to a bill approved by the parliament on December 7, the excise duty for cigarettes using the specific rate would grow by 29.7%, to UAH 577.98 per 1,000 without the increase in the ad valorem rate (12%).

The Rada supported the gradual - until 2025 - increase in the specific rate of the excise duty for tobacco products and the minimum excise duty obligation to pay excise tax on tobacco products, namely: in 2018 - by 29.7%, in subsequent years - by 20%, to a level equivalent to EUR 90 per 1,000 units.

In particular, in 2019 the specific excise rate will increase to UAH 693.58 per 1,000 units, in 2020 - up to UAH 832.29, in 2021 - up to UAH 998.75, in 2022 - up to UAH 1,198.5, in 2023 - up to UAH 1,438.2, and in 2024 - up to UAH 1,725.84.

The minimum excise duty to pay excise on cigarettes with a filter and without a filter in 2018 will be increased by 29.7%, to UAH 773.20 per 1,000 cigarettes. In 2019, this figure will reach UAH 927.84, in 2020 – UAH 1,113.4, in 2021 - UAH 1,336.08, in 2022 - UAH 1,603.3, in 2023 - UAH 1,923.96, and in 2024 – UAH 2,308.75.

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