In Ukraine cigarettes will rise by 4-5 hryvnia

В Украине сигареты подорожают на 4-5 гривен

A pack of cigarettes will rise by 4-5 hryvnia

The next rise in price due to increase in excise tax.

Due to the increase in excise taxes was 29.7%, the cost of a pack of cigarettes in Ukraine to 2018 will grow by 4-5 hryvnia. This forecast was made by tobacco manufacturers, reports Interfax-Ukraine.

However, it is noted that the price of cigarettes not only affects the growth of the excise duties.

“We estimate that after the increase of excise tax by 29.7% in 2018 the average price of a pack of cigarettes will rise by 4-5 UAH. However, be aware that the price increase not only affects the growth of the excise tax, but the cost of raw materials, semi-finished products, electricity, wages and other components, including the devaluation of the national currency”, – said the head of Department on work with state bodies of the company “British American tobacco Ukraine” Yuri Rilac.

We will remind, amendments to the Tax code envisages a gradual, until 2024, the increase in the specific excise tax rates on tobacco products and the minimum excise tax liability with respect to excise tax on tobacco products.

In the future, they must rise by 20% annually until 2024. The purpose of the plan of raising excise taxes – achievement of the minimum levels of taxation, which operates in the EU – EUR 90 per 1,000 cigarettes. Still, this indicator in Ukraine was 20 euros (596,05 UAH).

As reported, from January 1, the excise tax on cigarettes have increased by almost 30%.

We will remind, the Parliament approved increase of the excise tax on cigarettes by a third.

Source

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