In Ukraine, excise duties on tobacco will be increased: how this will affect the price of cigarettes.

The approved law on gradual increase of excise duty on tobacco

The Verkhovna Rada adopted a law that provides for an increase in taxation of tobacco products to meet Eurointegration standards and increase budget revenues.

Draft law No. 11090 provides for a gradual increase in excise rates until 2028. For example, in 2025, the excise tax on cigarettes will increase to 78 euros for 1000 pieces. Further increases are planned: in 2026 - by 5%, in 2027 - by 4.8%, in 2028 - by 4.7%, with the aim of reaching 90 euros for 1000 cigarettes.

The head of the parliamentary finance committee, Danilo Hetmantsev, noted that an increase in the average price of a pack of cigarettes is expected in 2025 to 116.1 hryvnias, which is 18.6% more than in 2024. A similar price increase is expected for electric heating tobacco products (THTP), reaching 120 hryvnias per pack, which represents a 12% increase.

Representatives from the tobacco industry expect constant price increases. According to Vadim Novosad from 'Imperial Tobacco', in 2025 the price of a pack will increase by 35%, and in subsequent years - by approximately 15% annually.

Experts from the organization 'Life' predict that by 2028, a pack of cigarettes could cost 135 hryvnias, while THTP could reach 140 hryvnias.

A special feature of the new law is the transition to calculating excise duties in euros instead of hryvnias, which will help avoid the negative effects of devaluation and inflation. The law also sets different tax rates for different types of tobacco products.

According to Yaroslav Zheleznyak, the delay in signing the law has led to budget losses of over 700 million hryvnias.

The law is awaiting the president's signature.

It is also worth mentioning the prices of cigarettes in other countries.

Philip Morris International explained why importing cigarettes from Poland is cheaper than producing them in Ukraine.