The President of Ukraine is once again urged to sign the law on increasing excise taxes on cigarettes
17 February 2025 16:56
A petition has been registered calling on the President of Ukraine to sign a law that would revise excise tax rates on tobacco products, thus fulfilling the Constitution and providing additional excise revenues critical to financing the Defense Forces. The petition is available on the website of the Ukrainian President, "Komersant Ukrainian" reports.
As it is known, the law “On Amendments to the Tax Code of Ukraine regarding the revision of excise tax rates on tobacco products” (№11090) was adopted on December 4 and sent to the President of Ukraine for signature on December 9.
MP Yaroslav Zheleznyak, who announced the adoption of this law on December 4, explained that in 2025 the price of a pack of cigarettes would have to increase by about 40 UAH. Budget revenues, respectively, would also increase. But this would be the case if the head of state signed the law. After that, the MP regularly reminds in his Telegram that the law has not yet been signed by the head of state.
What does the law change?
Law No. 11090 provides for the following key changes
– conversion of excise tax rates on tobacco products into euros;
– extension of the current excise schedule until 2028 to finally reach the minimum level set in the EU (EUR 90 per 1000 cigarettes);
– implementation of the European practice of taxation of heating tobacco sticks in terms of differentiation of excise rates compared to cigarettes.
According to preliminary estimates, in 2025, the planned increase in excise taxes should have replenished the state budget by about UAH 20 billion.
The petition cites other arguments as well
The main goal of the excise tax increase, as the petition emphasizes, is to reduce the consumption of tobacco products among Ukrainians and limit the availability of tobacco products to children.
In addition, the implementation of the law will bring excise taxation of tobacco products closer to the norms of the European Union, which is a necessary condition for European integration.
However, in the context of a full-scale existential war between our country and the Russian Federation, tax revenues to the budget to support the Defense Forces are also critically important. According to the petitioner, tobacco excise taxes are one of the least burdensome sources of such revenues for the economy.
As you know, the European Business Association made a statement about the importance of signing the law on revision of excise tax rates on tobacco products. The EBA emphasized that the delay in signing the law definitely does not contribute to predictability for business and creates uncertainty for the medium-term.
The Ukrainian National Committee of the International Chamber of Commerce (ICC Ukraine) also asked the President of Ukraine to sign the law.
