The delay in signing the law on raising excise on cigarettes has already cost Ukraine UAH 579,9 mln - MP
The delay in the signing by the President of Ukraine the law on increasing excise on tobacco products since January 1, 2025 has already cost the budget of Ukraine UAH 579,9 million – mentioned the member of the Parliament Yaroslav Zheleznyak in his Telegram channel.
This was reported by Censor.NET.
"Thanks to the tobacco lobby in the Office of President and the blocking of the signing of the excise tax increase #11090, we have already lost it: UAH 579.9 million of money to the budget," - he wrote.
The draft law #11090 on increasing excise taxes on tobacco products was voted by the Parliament on December 4, 2024 and since then has been waiting for the signature of the President of Ukraine.
It switches the excise tax rates on tobacco products from hryvnas to euros. Besides, it stipulates the extension of the current schedule of raising tobacco excise until 2028 to finally reach the minimum level established in the European Union (90 euros per 1,000 cigarettes).
Earlier, the MP Yaroslav Zheleznyak reported that in 2025 the price of a pack of cigarettes would increase by approximately UAH 40.
According to the estimates of the Ministry of Finance of Ukraine in the draft Budget Declaration, the adoption of the above mentioned law would make it possible to increase the revenues of the state budget of Ukraine by UAH 0.6 billion in 2025, by UAH 5 billion in 2026, by UAH 9.4 billion in 2027, and by UAH 13 billion in 2028.
Business associations, the IMF and the European Commission supported the draft law on raising excise taxes on tobacco products in Ukraine.
In particular, the IMF report notes that the Ukrainian budget revenues include both a package of tax measures and legislation to gradually bring tobacco excise taxes in line with EU directives. The main priority is to ensure that both laws are fully implemented by the beginning of 2025.
