Five bills equaling electronic cigarettes to conventional cigarettes and increasing the duty and ad valorem rate of the excise duty for cigarettes have been registered in Ukraine's Verkhovna Rada.

The respective changes are outlined in bills Nos. 9056, 9057, 9058, 9059 and 9060 registered in the Rada on September 6.

According to the documents, e-cigarettes will be included in the list of tobacco products, and liquids for e-cigarettes are included in the list of excisable cigarettes. So, the bills set a ban on the use, sponsorship, advertising and promotion of the sale of e-cigarettes and tobacco products for electric heating at the level with conventional tobacco products.

The tax rate for nicotine-containing liquids for e-cigarettes is proposed to be set at UAH 10 per 1 ml, and the minimum excise duty is 11 UAH per 1 ml. The rate of excise duty on e-cigarettes for 2018 is proposed at the level of UAH 577.98 per 1,000 units, with an annual increase of 20%, to the level of UAH 2,071 in 2025. The minimum excise duty for e-cigarettes in 2018 should be UAH 773.20 per 1,000 units, with an annual increase of 20%, to the level of UAH 2,770.5 per 1,000 pieces in 2025.

In addition, the deputies proposed that the customs tariffs for cigars and tobacco-containing cigarillos in packages containing 20 pieces is increased from 10% to 15%, as well as a duty for e-cigarettes at the level of EUR 8 per 1,000 pieces and for liquid for e-cigarettes at 10% are set.

The bills also proposed banning the production and sale of tobacco products containing ammonia, ammonium and urea or a combination of them.

In addition, the deputies want to increase the ad valorem excise rate on cigarettes from 12% to 16% and increase the excise duty by UAH 189. If the manufacturer or importer does not comply with the calculated excise formula, the coefficient 1.3 will be applied to it.