The government of Ukraine plans to significantly increase excise taxes on cigarettes while maintaining the current excise taxes on fuel

The Cabinet of Ministers plans to significantly increase excise taxes on cigarettes in 2024. Excise taxes on alcohol, beer, and fuel will remain unchanged.

This information was revealed by Yaroslav Zheleznyak, a member of the Finance Committee of the Verkhovna Rada, who disclosed the budget proposal.

The budget proposal suggests raising the specific excise tax rate on both filtered and unfiltered cigarettes by 20% in 2024, from 1,567.64 UAH to 1,881.17 UAH per 1,000 units.

Furthermore, the minimum tax liability for excise tax payment will also increase by 20%, from 2,097.12 UAH to 2,516.54 UAH per 1,000 units.

At the same time, the government plans to maintain the excise tax rate on spirits at 133.31 UAH per 1 liter of 100% alcohol, and on beer at 59.82 UAH per 1 liter of 100% alcohol.

Additionally, the government will keep the excise tax on gasoline at 213.5 euros per 1,000 liters, on diesel fuel at 139.5 euros, and on liquefied gas at 52 euros.

It’s worth noting that cigarette prices in Ukraine increase every year. Since the beginning of 2024, prices have risen by 11.1%, reaching 91.8 UAH per pack, while the overall inflation rate stands at 2.5%.