The Cabinet of Ministers has registered the draft law "On Amendments to the Tax Code of Ukraine on Revision of Excise Tax Rates on Tobacco Products" (No. 11090). This is stated in the government's announcement.
According to the report, the revision of excise taxes is aimed at harmonizing Ukrainian legislation with the requirements of the European Union.
Since 2018, Ukraine has had a plan to increase the excise tax on tobacco products by 20% annually. This plan was to ensure compliance with the EU Directive on the minimum excise tax liability of at least EUR 90 per 1000 cigarettes by 2025.
Due to the devaluation caused by the war, the excise tax on cigarettes will only reach EUR 70 in 2025.
"The current schedule does not allow us to reach the level of taxation established in the EU, so it became necessary to revise the excise tax rates in order to gradually reach the minimum level established by the EU Directive by 2028," the Cabinet of Ministers said in a statement.
The expression of excise tax rates on tobacco products is euros is recommended by the International Monetary Fund under the Extended Fund Facility (EFF) program and is envisaged by the National Revenue Strategy.
The implementation of the draft law will provide additional revenues to the state budget: in 2025 by UAH 612 million, in 2026 by UAH 5.001 billion, in 2027 by UAH 9.379 billion, and in 2028 by UAH 13.852 billion.
According to the report, this is important to support the defense and security sector, as all own revenues will be directed to the security and defense sector.
The Cabinet of Ministers expects that the implementation of the draft law will contribute to achieving a social effect: reducing cigarette consumption, and, as a result, the incidence of cardiovascular disease and increasing the life expectancy of Ukrainians.
The Cabinet of Ministers submitted to the Rada a bill on increasing excise taxes on tobacco products
- Law
- 19 March 2024 -15:40
-
560 views
The Cabinet of Ministers submitted to the Rada a bill on increasing excise taxes on tobacco products
Recommended News
The Cabinet of Ministers has registered the draft law "On Amendments to the Tax Code of Ukraine on Revision of Excise Tax Rates on Tobacco Products" (No. 11090). This is stated in the government's announcement.
According to the report, the revision of excise taxes is aimed at harmonizing Ukrainian legislation with the requirements of the European Union.
Since 2018, Ukraine has had a plan to increase the excise tax on tobacco products by 20% annually. This plan was to ensure compliance with the EU Directive on the minimum excise tax liability of at least EUR 90 per 1000 cigarettes by 2025.
Due to the devaluation caused by the war, the excise tax on cigarettes will only reach EUR 70 in 2025.
"The current schedule does not allow us to reach the level of taxation established in the EU, so it became necessary to revise the excise tax rates in order to gradually reach the minimum level established by the EU Directive by 2028," the Cabinet of Ministers said in a statement.
The expression of excise tax rates on tobacco products is euros is recommended by the International Monetary Fund under the Extended Fund Facility (EFF) program and is envisaged by the National Revenue Strategy.
The implementation of the draft law will provide additional revenues to the state budget: in 2025 by UAH 612 million, in 2026 by UAH 5.001 billion, in 2027 by UAH 9.379 billion, and in 2028 by UAH 13.852 billion.
According to the report, this is important to support the defense and security sector, as all own revenues will be directed to the security and defense sector.
The Cabinet of Ministers expects that the implementation of the draft law will contribute to achieving a social effect: reducing cigarette consumption, and, as a result, the incidence of cardiovascular disease and increasing the life expectancy of Ukrainians.