Volodymyr Zelensky signed a law on increasing the excise tax on tobacco

President Volodymyr Zelensky signed Law No. 11090 on increasing the excise tax on tobacco products. The document was returned with the signature of the head of state on March 24.

The law stipulates that the excise tax on cigarettes will now be tied to the euro, rather than the hryvnia. And from January 2028, new excise tax rates on tobacco products will come into effect, taking into account the minimum level set by EU Council Directive 2011/64/EU.

There will be an equivalent increase in such rates for tobacco, its industrial substitutes and a reduction in rates for tobacco-containing products for electric heating. Until then, the excise tax will gradually increase each year — the cost of a pack of cigarettes will increase by approximately 40 hryvnias.

The document is expected to harmonize Ukraineʼs tax legislation in the area of excise taxation of tobacco products with EU legislation. This is necessary for the implementation of the Association Agreement.

MP from the “Voice” party Yaroslav Zheleznyak said that the signing of the bill was delayed. Because of this, according to him, the Ukrainian budget has lost more than 2 billion hryvnias since January 1 of this year.

• The Verkhovna Rada approved the draft law as a whole in early December 2024. The decision was supported by 237 parliamentarians.

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