REUTERS
The excise duty on tobacco is scheduled to be increased by 29.7% in 2018 and then by 20% annually by 2025 until the EU minimum standard, set at EUR 90 per 1,000 pieces, is achieved.
The National Bank of Ukraine (NBU) has forecast that prices of tobacco will grow by 18% and those of alcohol by 11% in 2018 in connection with an increase in excise tax rates as part of harmonization with EU requirements.
Read alsoEU calls on Ukraine to fight against illicit tobacco trade
As UNIAN reported, the Verkhovna Rada, Ukraine's parliament, adopted amendments to the Tax Code of Ukraine on December 7, 2017, to balance the national budget of Ukraine for 2018. In particular, rates of a number of taxes and duties fixed in absolute terms were adjusted in line with the consumer price index.
The law provides for an increase in rates of environmental tax, royalties for the use of subsoil, rents for the special use of water and forest resources, excise tax on tobacco. The excise duty on tobacco is scheduled to be increased by 29.7% in 2018 and then by 20% annually by 2025 until the EU minimum standard, set at EUR 90 per 1,000 pieces, is achieved.