Zelensky signs Ukraine's tobacco excise tax bill into law, hike in tobacco prices now expected

MOSCOW. March 24 (Interfax) - Ukrainian President Vladimir Zelensky has signed into law a bill regarding the excise tax on tobacco products as part of Ukraine's European integration drive, Ukrainian media said on Monday, citing the Verkhovna Rada's press service.

"The law gradually raises the excise tax on cigarettes until 2028, including a simultaneous and equivalent increase in these rates for tobacco and its industrial substitutes. From now on, the rates of the excise tax on tobacco products will be pegged to the euro," the press service said in a statement.

Thus, the new law aligns Ukraine's tobacco excise tax with the European Union's legislation pursuant to the sides' Association Agreement, it said.

As previously reported, a bill revising Ukraine's excise tax on tobacco products was adopted by the Verkhovna Rada in the second reading and as a whole on December 4, 2024.

Media outlets said, citing MP Yaroslav Zheleznyak, that prices for cigarettes in Ukraine will grow by around UAH 40 per pack.