European Commission insists on Ukraine aligning excise taxes on tobacco products

MOSCOW. Nov 27 (Interfax) - As part of bringing tax legislation closer to EU standards, Ukraine must align excise rates on various categories of tobacco products with the European ones, Ukrainian media said, citing a European Commission report published within the framework of the 2024 EU enlargement package and assessing progress of EU candidates and potential candidates.

"As for excise duties on tobacco products, the Ukrainian Tax Code is generally aligned with EU legislation. Further harmonization is required for various categories of tobacco products and excise duty rates applied in accordance with EU standards," the report said.

Alignment of tax rates on cigarettes and electrically heated tobacco products (EHTP) is envisaged by a government bill submitted to the parliament on March 18, 2024, consistent with the Finance Ministry proposals. The second reading of the bill is due in parliament in December.

Business associations have asked the parliament to pass in the second reading the government bill increasing the excise tax on tobacco products and aligning them with the European approach to EHTP taxation.