Despite a 25 percent increase in cigarette excise tax, Ukraine still has among the lowest-taxed and lowest-priced cigarettes in Europe. Studies have shown that cheap prices stimulate consumption. The nation has one of the highest smoking rates in the world, with some 40 percent of adults as regular smokers.
| Anti-tobacco activists consider the recent excise-tax increase by lawmakers to be a small step trying to discourage consumption of the deadly products. |
The rate of excise duty on cigarettes with filter has grown by 25% or UAH 7.5 to UAH 37.5, and on cigarettes without filter by 24.8% or UAH 3.1 to UAH 15.6 per 1,000 cigarettes, says the bill of amendments to some excise duty laws, adopted on December 25, 2008. Starting on July 2009, the excise duty on filter cigarettes will be UAH 45, and no-filter UAH 19.5 per 1,000 cigarettes. From 2010, the excise on filter cigarettes will be UAH 52, no-filter UAH 27 per 1,000; from 2011 it will rise to UAH 60 per 1,000 of filter and UAH 35 no-filter cigarettes. As Ukrainian News reported, in August 2008 Verkhovna Rada raised excise duty rate on tobaccos. |
