The State Tax Service of Ukraine and the Ministry of Finance have voiced strong opposition to a proposed bill that seeks to limit nicotine content in pouches to 1 mg per serving. They warn that such restrictions could significantly reduce excise tax revenues for the national budget.
According to the State Tax Service, nicotine pouches currently imported into Ukraine contain nicotine levels ranging from 11 to 16.5 mg per serving. The authorities argue that implementing a 1 mg limit would effectively ban these products, which are widely available in the market.
The Ministry of Finance estimates that if this initiative is enacted, the government could face a loss of approximately 1.2 billion UAH in excise tax and VAT by 2026.
The proposed bill, known as Draft Law No. 14110-d, aims to restrict nicotine content to 1 mg per pouch, a measure that critics say would eliminate all current products from the market. Previously, lawmakers considered a complete ban on the sale of nicotine pouches in Ukraine.
Key arguments against the ban include the widespread use of these pouches among military personnel on the front lines and the significant tax revenues they generate, which reportedly exceed 1 billion UAH. During earlier discussions, lawmakers cautioned that a total prohibition could drive the market underground, reducing tax income. They advocate for regulatory measures that would allow for nicotine content control while preventing sales to minors.
Ukrainian tax and finance officials are challenging a proposed law that would limit nicotine levels in pouches, citing potential revenue losses and market impacts. They argue for regulatory oversight instead of outright bans to protect tax income and public access.