The Law on amendments to the Tax Code of Ukraine and certain other laws of Ukraine in connection with the introduction of electronic tracking of the turnover of alcoholic beverages, tobacco products and liquids used in electronic cigarettes (No. 8287) was signed on Monday, July 24, by Ukrainian President Volodymyr Zelenskyy.

According to the document, paper excise stamps will be replaced by electronic ones from January 2026. At the same time, the eExcise system will begin to operate.

According to Deputy Prime Minister - Minister of Digital Transformation Mykhailo Fedorov, the implementation of the provisions of this law will reduce the turnover of the shadow markets of tobacco and alcohol in the country.

"Ukraine loses about UAH 30 billion a year due to the shadow market. To change this, the eExcise project was created. This is one of the largest anti-corruption laws in the field of tobacco and alcohol control. It provides for the creation of a digital system that will allow tracking goods and developing a transparent market for alcohol and tobacco products. It will also replace paper excise stamps with electronic ones," he wrote on Telegram on Tuesday.

The minister added that the eExcise would not only control the circulation of alcoholic and tobacco products, but also limit the distribution channels for illegal products, and increase state budget revenues from excise tax by 15%.

As Fedorov noted, it is impossible to forge an electronic excise stamp. The procedure for its registration, unlike the procedure with a paper stamp, is simple. Everyone will be able to check the products by scanning a special DataMatrix code through the Diia application.

The eExcise project is being implemented with expert and technical support from USAID/UK aid of the Transparency and Accountability in Public Administration and Services/TAPAS project in close cooperation with the Ministry of Digital Transformation, the Ministry of Finance, the Tax Service and the Verkhovna Rada.

The Parliament of Ukraine voted for draft law No. 8287 at the final reading on June 29, 2023.