In 2025, a significant increase in cigarette prices is expected in Ukraine due to the rise in excise taxes on tobacco products. The National Bank of Ukraine confirmed in its April “Inflation Report” that the new regulations are already affecting the pricing process.
This is reported by Finway
Manufacturers and importers have begun raising prices even before the new rules come into effect. The main reason for this is the anticipated shift to calculating excise taxes in euros, which will take effect at the end of March 2025. According to the current schedule, the excise tax rate will increase significantly this year, while in the following years (2026-2028), the rate of increase will be more moderate.
New Excise Rules and Their Consequences
From April 1 to December 31, 2025, an increase coefficient of 1.1 will also be introduced, which will be applied to calculate the minimum excise tax liability. This decision was prompted by a lag in meeting tax norms, as in 2024, the share of tax liabilities in the retail price of cigarettes did not reach the regulatory 60%.
“It is expected that this will lead to a gradual increase in retail prices as the stocks of excise stamps purchased before the mentioned tax changes are depleted”
, – reported the National Bank of Ukraine.