The Verkhovna Rada of Ukraine supported draft law No. 11090 in the first reading, which provides for an increase in the excise tax on tobacco products. This decision was adopted by 249 votes of people's deputies.

People's deputy Yaroslav Zheleznyak informed about this, noting that the main change concerns tying the excise tax on cigarettes to the euro instead of the hryvnia. According to the new draft law, the excise tax on tobacco products will increase by 23% in 2025, and from 2026 to 2028, it will increase annually by 5%.

From July 1, 2024, the minimum excise duty on cigarettes will be 63.45 euros per 1,000 pieces, which will be achieved by converting the current rate from the hryvnia to the euro. The same change applies to the excise tax on tobacco products for electric heating. Rate increases in 2024 will occur only in case of devaluation of the national currency.

It is expected that the implementation of this draft law will significantly increase the revenues of the state budget. It is predicted that additional revenues from the excise tax on tobacco products will amount to about UAH 612 million in 2025, UAH 5 billion in 2026, UAH 9.3 billion in 2027, and UAH 13.8 billion in 2028.

The bill also provides for an increase in rates for 2026-2028, which is currently not regulated by the Tax Code. In particular, the minimum excise duty on cigarettes will increase by 5% every year, reaching 90 euros in 2028. The rate of excise tax on tobacco products for electric heating will also increase and will reach 72 euros in three years.

Yaroslav Zheleznyak noted that before the second reading, the issue of TVENs (tobacco products for electric heating) will be reviewed, which is emphasized by public organizations. This means that discussions and possible changes in this aspect are still ahead.

Thus, draft law No. 11090 is an important step in the direction of increasing excise rates on tobacco products in Ukraine, which aims not only to increase state budget revenues, but also to help reduce tobacco consumption among the population.