In the Parliament proposed to increase the excise tax on cigarettes

Specific excise rates on tobacco from 1 January 2018, could grow by 33% to 592,59 UAH per 1 thousand pieces with the increase in ad valorem rate from 12% to 20%.

The corresponding bill number 6683-1 registered in the Parliament. The authors of the document – Oksana Yurynets, Andrew Antonischak, Yaroslav Dubnevich, Nicholas Rusnak, Robert gorvat (BPP), Igor Lapin, Igor Vasyunyk (both “people’s front”), Tetiana Ostrikova (“Samopomich”), Denis Silantiev (“Radical party of Oleg Lyashko”), etc.

In the explanatory note to the bill States that the proposed increase in rates will provide additional revenues in the amount of 11.8 billion UAH per year.

“Such changes in the taxation of tobacco products will help to establish the proportion of excise tax in the price of tobacco products at a level of 60% as stipulated by the Association Agreement between Ukraine and the European Union”, – the document says.

According to the authors of the bill, the proposed increase in excise tax rates reduce the risk of shadowing of the market and fairly distribute the load on all segments of the tobacco market, its consumers and producers.

While a similar bill registered by the government – on the idea of the Cabinet, the producers of alcohol will have to pay in the budget from 8 to 11% more.

We will remind, earlier the Cabinet of Ministers has increased the minimum wholesale release and retail prices on separate types of alcoholic beverages.