Changes In Excise Tax Rates On Tobacco Products

On 25 March 2025, the Law of Ukraine No. 4115-IX (Draft Law No. 11090) came into force, which, inter alia, provides for amendments to the excise tax rates on tobacco products, taking into account the minimum level set by Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco.

The amendments also set the monetary unit for measuring the excise tax rate on tobacco products in euros to avoid the impact of inflation on the increase in excise tax rates.

At the same time, the Law introduces a gradual increase in the excise tax rates on cigarettes, tobacco and industrial tobacco substitutes by 2028, the details of which are specified below:

  • Raw tobacco; tobacco waste; cigars, including cigars with cut ends, containing tobacco; other manufactured tobacco and manufactured tobacco substitutes (“homogenised” or “reconstituted” tobacco; tobacco extracts and essences):
    • from 01 January 2025 to 31 December 2025 – EUR 73 per 1 kg (net);
    • from 01 January 2026 to 31 December 2026 – EUR 77 per 1 kg (net);
    • from 01 January 2027 to 31 December 2027 – EUR 81 per 1 kg (net);
    • from 01 January 2028 – EUR 85 per 1 kg (net).
  • Cigarillos, including cigarillos with cut ends, containing tobacco; cigarettes without a filter; cigarettes with a filter:
    • from 01 January 2025 to 31 December 2025 – EUR 58 per 1000 pcs;
    • from 01 January 2026 to 31 December 2026 – EUR 61 per 1000 pcs;
    • from 01 January 2027 to 31 December 2027 – 64 euros per 1000 pcs;
    • from 01 January 2028 – EUR 67 per 1000 pcs.
  • Tobacco-containing products for electric heating with an electronically controlled heater:
    • from 01 January 2025 to 31 December 2025 – EUR 70.4 per 1000 pcs;
    • from 01 January 2026 to 31 December 2026 – EUR 70.8 per 1000 pcs;
    • from 01 January 2027 to 31 December 2027 – EUR 71.14 per 1000 pcs;
    • from 01 January 2028 – EUR 72 per 1000 pcs.

Other nicotine-containing products for oral use; other products containing tobacco, reconstituted tobacco and tobacco substitutes intended for inhalation without combustion; other nicotine-containing products, their substitutes:

  • from 01 January 2025 to 31 December 2025 – EUR 73 per 1 kg (net);
  • from 01 January 2026 to 31 December 2026 – EUR 77 per 1 kg (net);
  • from 01 January 2027 to 31 December 2027 – EUR 81 per 1 kg (net);
  • from 01 January 2028 – EUR 85 per 1 kg (net).

In addition, the Law provides for a gradual increase in the minimum excise tax liability for tobacco products by 2028, the details of which are also specified below:

  • Cigarettes without filter; cigarettes with filter:
    • from 01 January 2025 to 31 December 2025 – EUR 78 per 1000 pcs;
    • from 01 January 2026 to 31 December 2026 – EUR 82 per 1000 pcs;
    • from 01 January 2027 to 31 December 2027 – EUR 86 per 1000 pcs;
    • from 01 January 2028 – EUR 90 per 1,000 pcs.
  • Cigarillos, including cigarillos with cut ends, containing tobacco:
    • from 01 January 2025 to 31 December 2025 – EUR 78 per 1000 pcs (but not less than EUR 73 per 1 kg (net));
    • from 01 January 2026 to 31 December 2026 – EUR 82 per 1000 pcs (but not less than EUR 77 per 1 kg (net));
    • from 01 January 2027 to 31 December 2027 – EUR 86 per 1000 pcs (but not less than EUR 81 per 1 kg (net));
    • from 01 January 2028 – EUR 90 per 1000 pcs (but not less than EUR 85 per 1 kg (net)).

Thus, this Law aligns the tax legislation of Ukraine in the field of excise taxation of tobacco products with the EU legislation.