In Ukraine, a significant increase in prices for tobacco products, in particular cigarettes, "sticks" and liquids for electronic cigarettes, is expected from 2025. This is due to the increase in excise duties, which were provided for in the draft law approved by the Verkhovna Rada back in December 2024. However, the document has not yet been signed by the president, which delays the implementation of the changes.
According to Yaroslav Zheleznyak, deputy chairman of the parliamentary finance committee, Ukraine has already lost more than 700 million hryvnias due to the delay in signing the law. It is expected that the law will still be signed, and excise duties on tobacco products will gradually increase until 2028.
Why are excise taxes increasing?
Ukraine has committed to the European Union to bring its excise taxes on tobacco products to the European level. In particular, by 2028, the excise tax on cigarettes should reach 90 euros per 1,000 pieces, and on e-cigarettes (so-called “sticks”) - 72 euros. Also, from 2025, the excise tax on liquids for electronic cigarettes will increase to 300 euros per 1 liter.
How will prices change?
According to the plan, the excise tax on cigarettes will increase gradually:
- 2025 – 78 euros (+35.4%)
- 2026 – another +5%
- 2027 – another +4.8%
- 2028 – 90 euros (+4.7%)
For TWENs (“sticks”):
- 2025 – 70.4 euros (+22%)
- 2026-2027 – +0.5% each
- 2028 – 72 euros (+1.2%)
Prices for cigarettes and “sticks”
In 2024, the average price of a pack of cigarettes is 100 hryvnias. It is expected to increase to 115-125 hryvnias in 2025, depending on the type of product. In 2028, the price of cigarettes may reach 135-140 hryvnias, and for some brands - up to 205 hryvnias.
According to Mikhail Polyakov from Philip Morris Ukraine, the increase will be gradual, and the price may change once or twice a month until manufacturers pass on all costs to the consumer. In addition to excise taxes, the final cost will be affected by other economic factors, such as the cost of raw materials and supplies.
