Ukraine is preparing to increase excise taxes on fuel, cigarettes, and sugary drinks; how will this affect pricing?

Next year, Ukraine plans to increase excise taxes on fuel, cigarettes, and soft drinks. Leonid Leonov, a member of the Verkhovna Rada’s financial committee, says that the excise tax on fuel will increase by 10–17%, on cigarettes by approximately 5%, and the excise tax on soft drinks is expected to bring almost UAH 8 billion to the budget. Leonov stated this on the air of the telethon, UNN writes.

Details

Next year, we expect an increase in the excise tax on cigarettes by approximately 5% – I remind you that this is a trend we have been following since 2018. If we talk about fuel, the change in excise tax will be from 10 to 17%. And a law on excise tax on soft drinks is also planned, which should bring almost UAH 8 billion to the budget.

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Leonov emphasized that an increase in excise tax is not synonymous with an increase in the final price at gas stations, because fuel costs are also affected by transportation issues, logistics, and the exchange rate. Therefore, in his opinion, the actual increase in the retail price of fuel is predicted to be approximately 1–2 hryvnias per liter.

Further, the draft laws must be approved by the parliament and committees, after which it will be clear exactly when and to what extent the changes will come into force.

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