Ukraine plans to increase the excise duty on cigarettes, alcohol, and fuel to harmonize with EU norms.
A schedule of annual rate increases until 2028 has been established for all excise goods. In particular, the excise tax on tobacco products will be equated to the euro, the tax rate will gradually increase to €90 for 1,000 cigarettes.
As well, the excise tax on gasoline will rise from €215.5 per 1,000 liters to €359; on diesel fuel, it will rise from €139.5 to €330; and on liquefied gas from €52 to €70.
It is also expected that excise duties will be increased on intermediate alcoholic products from ₴8.42 to ₴12.23 per liter.
The government expects that tying excise taxes on tobacco products to the euro will provide additional revenue for the state budget: ₴612M in 2025, ₴5.001B in 2026, ₴9.379B in 2027, and ₴9.379B in 2028. The new rules will allow the collection of an additional ₴1.6B monthly from the sale of fuel and ₴4.5M from the sale of intermediate alcoholic products.