In 2024, a significant increase in cigarette prices is expected in Ukraine due to planned excise tax hikes

In Ukraine, in 2024, as a result of planned excise tax increases, cigarette prices will rise by approximately 12 hryvnias (0.3 euros) per pack. As a result, a pack of premium-class cigarettes will cost 108 hryvnias (2.63 euros),

This information reported according to the Ukrainian media.

Ukraine has committed to annually increasing excise taxes on tobacco products by 20% (EU Directive 2011/64/EU). Thus, by 2025, the excise tax should have reached the minimum level in the EU – 90 euros per thousand units (although it will not reach this level due to inflation), or about 1.8 euros per pack. In neighboring European countries, excise taxes have long exceeded this mark.

How cigarette prices will change:

• Ukrainian cigarettes – from 75.2 to 87 hryvnias per pack (1.83 euros – 2.12 euros);
• Medium-class – from 81.4 to 93.5 hryvnias (1.97 euros – 2.27 euros);
• Premium-class – from 96.17 to 108 hryvnias (2.34 euros – 2.63 euros).

For example, in Ukrainian supermarkets, Camel Blue cigarettes are sold for 105 hryvnias (2.56 euros). In neighboring Poland, for the same pack, one would have to pay 178.5 hryvnias (4.34 euros). This situation leads to constant smuggling, as residents of border towns regularly travel to neighboring Poland with cigarettes, which immediately become about 70% more expensive after crossing the border.

In 2023, Ukrainians paid an excise tax of 2097.12 hryvnias (51.13 euros) for a thousand cigarettes – 41.9 hryvnias per pack (1 euro). In 2024, they will have to pay 2516.54 hryvnias (61.34 euros) – 50.33 hryvnias per pack (1.22 euros). Thus, the excise tax alone will increase the cost of a pack of cigarettes by 8.43 hryvnias (0.2 euros). However, considering the excise tax’s share in the total cost, the increase will be at least about 12 hryvnias (0.29 euros).