Market & legal data of the tobacco alternative sector in Ukraine

19th June 2024: Ukraine: The State Production and Consumer Service has announced that the government is creating the “eTobacco” portal, where it will be possible to monitor the circulation and quality of tobacco products. On this portal, manufacturers and importers will provide information on the ingredients of tobacco products and the emissions resulting from their use. The portal should start operating in February 2025.
19th June 2024: Ukraine: The parliament has adopted in the second reading a bill seeking to change the existing Law On State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Alcohol, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes, and Fuel (Tobacco and Alcohol Act). The new bill aims, among other things, to simplify the procedure for obtaining required licences, including a transition to e-licences as well as issuing unlimited licences. The cost of licences would also be adjusted together with the amount of fines for violating the requirements of the act. The bill now needs to be signed by the president.
14th June 2024: Ukraine: Kyiv City Council has decided to reduce the number of kiosks in the capital within two years, as well as to prohibit them from selling excise goods, including tobacco and vaping products, media reports. It is still unclear when the sales ban will be implemented in the city’s kiosks.
5th June 2024: Ukraine: Yesterday (4th June), the parliament adopted in its first reading the draft amendment to the Tax Code regarding the revision of excise tax rates on tobacco products. If adopted further, the new rates would take into account the minimum level determined by the EU tobaco tax directive (2011/64/EU) from 1st January 2028. In addition, the bill envisages a gradual annual increase in rates starting from 1st July 2024 to bring them to the specified minimum level by 31st December 2027. The euro is proposed as the monetary unit for measuring the excise tax rate on tobacco products in Ukraine.
4th June 2024: Ukraine: The Ministry of Digital Transformation is working on the introduction of eExcise, a digital tool for combatting the shadow market of alcohol, tobacco products and e-liquids. The new system will replace the old paper excise stamp with an electronic one with a data matrix code, media reports. The eExcise system should start operating in 2026.
3rd June 2024: Ukraine: The parliament's Finance Committee has supported the government's draft amendment to the Tax Code regarding revision of excise tax rates on tobacco products, media reports. If adopted, the new rates would take into account the minimum level determined by the EU Tobacco Tax Directive (2011/64/EU) from 1st January 2028. The bill also envisages a gradual annual increase in rates to bring them to the specified minimum level starting from 1st July 2024 to 31st December 2027. The government proposes to use the euro as the monetary unit for measuring the rate of excise tax on tobacco products in Ukraine.
30th April 2024: Ukraine: The Cabinet of Ministers has adopted the resolution on approval of the procedure for maintaining the Unified State Register of equipment for the preparation or processing of tobacco, tobacco raw materials and industrial production of tobacco products, media reports.
25th April 2024: Ukraine: The parliament has adopted a bill seeking to change the existing Law on State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Alcohol, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes, and Fuel (Tobacco and Alcohol Act), media reports. The new bill, which was adopted in the first reading, aims to simplify the procedure for obtaining required licences, including a transition to e-licences as well as issuing unlimited licences. Licence fees would be adjusted as would the monetary amounts of fines for violating requirements of the act.
19th March 2024: Ukraine: The government has registered a bill amending the Tax Code in the Verkhovna Rada (parliament), which proposes new excise tax rates for tobacco products from 1st January 2028, taking into account the minimum level determined by the EU Tobacco Tax Directive (2011/64/EU), media reports. The bill also envisages a gradual annual increase in rates – starting 1st July 2024, until 31st December 2027 – to bring them to the specified minimum level, and the government has proposed to use the euro as the monetary unit to measure the excise tax rate on tobacco products.
15th March 2024: Ukraine: Law 3553-IX, which changed the tax code, has come into force this month. The law introduces new excise tax categories for products containing tobacco substitutes intended for inhalation without burning, and for nicotine-containing products for oral use. Nicotine-containing products for oral use will be taxed from 1st September 2024 at a rate of UAH2,363.40 (€56) per kg. The tax will rise in January 2025 to UAH2,836.08 (€67) per kg, and the same rate will apply to products containing tobacco substitutes intended for inhalation without burning as of 2025. TobaccoIntelligence believes the tax will cover nicotine pouches and herbal heated products.
2nd February 2024: Ukraine: In the first reading of a bill seeking to change the existing Law On State Regulation of Production and Circulation of Ethyl Alcohol, Cognac and Fruit Alcohol, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes, and Fuel (Tobacco and Alcohol Act), the Parliament Committee on Finance, Tax, and Customs Policy recommended adoption, media reports. The new bill seeks to simplify the procedure for obtaining licences, including a transition to e-licences as well as issuing unlimited licences. The cost of licences would also be adjusted together with the amount of fines for violations of the act.
17th January 2024: Ukraine: Yesterday (16th January), the Verkhovna Rada (parliament) approved bill 10321-1 on tobacco tax changes. The bill introduces new excise tax categories for products containing tobacco substitutes intended for inhalation without burning and for nicotine-containing products for oral use. If signed, these products will be taxed from 1st July 2024 at a rate of UAH2,363.40 (€57) per kg, which will rise in January 2025 to UAH2,836.08 (€69) per kg. TobaccoIntelligence believes the tax would cover nicotine pouches and herbal heated products.

LATEST ALERTS

Alternative tobacco and nicotine products in Ukraine

What will the year ahead bring? Expected tobacco and nicotine regulation in 2024

PMI accelerates smoke-free growth in Q3, fuelled by Zyn nicotine pouch sales in US

PMI admits it can’t quit Russia due to international financial regulations

Stability follows peak in unregulated growth: Ukraine market report

Regulatory insights on herbal heated products in Europe, April 2024

Ukraine: oral tobacco and nicotine pouch regulation, May 2023

Ukraine: heated tobacco regulation, May 2023

Heated tobacco pricing tracker

Heated tobacco markets database

TobaccoIntelligence compliance calendar

Global regulatory tracker: tobacco-free pouches, June

Regulatory database: global alerts round-up, June

Sign up to our newsletter

LATEST ALERTS

Alternative tobacco and nicotine products in Ukraine

Sign up to our newsletter

Start your FREE trial