Philip Morris in 2025 increased tax payments to Ukrainian budget by 12% to UAH 58.5 billion

In 2025, Philip Morris in Ukraine paid UAH 58.5 billion in taxes, which is UAH 6.3 billion (or 12%) more than in 2024. This is stated in the company's press release.

The increase in tax revenues occurred despite difficult business conditions, such as regular power outages and economic challenges caused by the war.

The main part of tax payments was made by the excise tax - almost UAH 44 billion, as well as the value added tax (VAT) - UAH 13.4 billion. These revenues play an important role in supporting the state budget in the context of rising spending on defense, social programs and infrastructure rehabilitation.

"The increase in taxes paid in 2025 was due to an increase in excise tax rates on tobacco products, as well as the transfer of cigarette production from a partner's factory to the company's own enterprise in the Lviv Region," said Philip Morris Ukraine CFO Serhii Kalnoochenko.

At the same time, he noted that the potential for filling the budget remains much higher. The growth of the illegal segment of the tobacco market remains a significant deterrent, which negatively affects both state budget revenues and fair competition.

"The growth of shadow trade significantly reduces the amount of budget revenues. In the conditions of war, lack of electricity and heat, these are funds that could be used to support the state and citizens," emphasized Serhii Kalnoochenko.

According to him, the reduction of the legal market directly affects the production of Philip Morris in Ukraine. At the factory in the Lviv Region, some of the five installed production lines are currently underutilized.

Further growth of the illegal segment may force the company to reconsider its investment plans in Ukraine.

Philip Morris remains one of the largest taxpayers and investors in Ukraine. Despite the missile attack on the company's Kharkiv facility in January 2026, the company continues to fulfill its obligations to the state budget, partners and consumers.

The company also provides humanitarian support to communities in the Kharkiv, Lviv, and Kyiv Regions, and cooperates with the largest rehabilitation funds - Superhumans, U+System, UNBROKEN, and others. Since the beginning of the full-scale invasion, projects worth UAH 431 million have been implemented.

We would like to remind you that the Philip Morris factory in Kharkiv, Ukraine, has been suspended since February 24, 2022, the beginning of the full-scale russian invasion.

In 2024, Philip Morris Ukraine opened a new factory in the Lviv Region, investing USD 30 million in its launch. To work at the new factory, 250 employees of the Kharkiv factory were relocated.

In 2024, the company paid UAH 52.2 billion in taxes, including UAH 39.1 billion in excise tax.

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