Up to 160 hryvnias for a pack of cigarettes: Ukrainians warned about tobacco price increase and showed prices in other countries.

Update on excise tax on tobacco products

Recently, the Verkhovna Rada adopted a law on increasing the excise tax, which will lead to significant changes in the Ukrainian cigarette market.

Ukraine has one of the lowest prices for tobacco products in the world. The price of a pack of Marlboro cigarettes is about 2.29 euros, while in EU countries it ranges from 3.07 euros to 16.25 euros.

According to the new law, from 2025 the specific excise rate on cigarettes will increase by 23.4%, and the minimum tax obligation will increase by 23.9%.

The new law ties excises to euros, which will help avoid the impact of the hryvnia's devaluation on compliance with European requirements.

According to people's deputy Yaroslav Zheleznyak, the cost of a pack of cigarettes may increase by approximately 40 hryvnias. And by 2028, the price for a pack may reach around 160.5 hryvnias.

These changes align with the recommendations of the International Monetary Fund and the European Commission. In the EU, the minimum excise rate on cigarettes is 90 euros per thousand pieces.

However, the Ukrainian tobacco market is threatened by the black market. Law enforcement agencies need to combat it by implementing the electronic system 'e-Excise'.

According to the Chairman of the Verkhovna Rada Committee on Finance, Daniil Hetmantsev, the main goal of the law is to gradually bring excise rates in line with European standards by 2028.

Updating excise rates is one of the fiscal measures needed to meet the requirements of the EU Directive.