In Ukraine, tobacco prices will increase - President Volodymyr Zelenskyy has signed a bill # 11090, which provides for an increase in excise duties on cigarettes. The law was adopted by the Verkhovna Rada in December 2024, and now has officially entered into force. This was reported by MP Yaroslav Zheleznyak, noting that the information had confirmed the sources in international financial institutions and government.
According to the new law, excise duty on tobacco products will increase significantly, which will lead to a rise in price of a pack of cigarettes by approximately 40 UAH. However, it is unclear now that new excise duty rates have come into force - the law had to work since January 1, 2025, but due to the delay in signing, changes in the timing of the implementation are possible.
Increasing excise duties are part of Ukraine's obligations to international partners, including the European Union. According to the Association Agreement with the EU, Ukraine should gradually bring the level of excise duty to tobacco to European standards. This means that over the next few years, cigarette prices will continue to rise.
For consumers, this step means another punch on your wallet - especially for those who prefer premium brands. At the same time, the government expects that increased excise duties will help to reduce smoking among the population, especially among young people. On the other hand, experts warn that a significant increase in the cost of tobacco can provoke an increase in the shadow market and smuggling of cheap cigarettes from abroad.
The question remains when the law is officially published and when it comes into force. The government is expected to provide an explanation in the coming weeks.
