“ICC Ukraine and a number of other business associations appealed to the president to sign the law “On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding revision of excise tax rates on tobacco products” (No. 4115-IX). This is reported by ICC Ukraine. The Verkhovna Rada approved the new law on December 4, 2024, it was supposed to enter into force on January 1, 2025”, — write on: ua.news
ICC Ukraine and a number of other business associations appealed to the president to sign the law “On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding revision of excise tax rates on tobacco products” (No. 4115-IX).
This is reported by ICC Ukraine.
The Verkhovna Rada approved the new law on December 4, 2024, and it was supposed to enter into force on January 1, 2025.
“Unfortunately, due to the delay in its signing, business representatives lack understanding regarding the planning of their business activities for this year, the predictability of paying taxes in the future and the investment strategy in general. This is due to the fact that the lion’s share in the taxation of tobacco products is the excise tax, therefore the size of its rates has a decisive influence on the business processes of the tobacco and related sectors of the economy,” the association said in its appeal.
Similar appeal letters to the President were sent by the Federation of Employers of Ukraine, the National Organization of Retail Trade and the Council of Entrepreneurs under the Cabinet of Ministers.
As a reminder, Law No. 4115-IX provides for the transfer of excise tax rates on tobacco products to euros, the extension of the current excise schedule until 2028 in order to finally reach the minimum level established in the EU (90 euros per 1,000 cigarettes) and the implementation of the European practice regarding the taxation of TWEN in part of the differentiation of excise rates compared to cigarettes.
Earlier, People’s Deputy Yaroslav Zheleznyak reported that in 2025 the price of a pack of cigarettes will increase by approximately UAH 40.
The Ministry of Digital Transformation of Ukraine, in turn, is working on “eExcise” – an electronic system for the circulation of tobacco and alcohol. The beta test of the application is planned for spring 2025.
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