Ukraine had previously aimed to raise the tobacco excise tax rate to the EU's lowest by 2025, but the expected windfall has already been inflated by using the hryvnia instead of the euro as the benchmark, the Interfax news agency reported. Devoured.
Under the new strategy, Ukraine’s tobacco excise tax rate will be pegged to the euro.
The government expects the measure to generate additional revenue equivalent to 1.5% to 2.2% of gross domestic product.
Ukraine also plans to implement an electronic tracking system for tobacco products and e-liquids.
The National Revenue Strategy for 2024-2029 is one of the structural benchmarks of Ukraine’s cooperation plan with the International Monetary Fund, which Ukraine has committed to complete by the end of 2023