Excise tax on cigarettes: starting from April 1, a coefficient of 1.1 will be applied to minimum tax liability

After April 1, 2026, the amount of excise tax on cigarettes cannot be less than the minimum tax liability multiplied by a coefficient of 1.1.

This is stated in the report of the Tax Service, the Ukrainian News agency informs.

This is due to the indicators of excise tax declaration by cigarette manufacturers and importers for 2025. According to the Tax Code, if the share of excise tax in the price for the previous year is less than 60%, a coefficient of 1.1 is applied to the minimum tax liability.

In 2025:

• the total amount of tax liabilities on excise tax on cigarettes (including excise tax on retail trade) - UAH 3,846.3 per 1000 units;
• weighted average retail selling price of cigarettes (including retail excise tax) – UAH 6,537.0 per 1,000 pieces;
• share of the total amount of tax liabilities in the weighted average retail price – 58.8%.

Since in 2025 the share of excise tax in the price of cigarettes was 58.8%, from April 1 to December 31, 2026, manufacturers and importers of tobacco products under the Ukrainian Classification of Goods of Foreign Economic Activity (UCGFEA) codes are obliged to apply the coefficient of 1.1:

- 2402 20 90 10 cigarettes without a filter;

- 2402 20 90 20 cigarettes with a filter.

As the Ukrainian News agency earlier reported, cigarette prices will continue to rise due to the increase in excise taxes on tobacco products.

Prices will gradually increase every month from 2025 to 2028. Eventually, the average cost of a pack of cigarettes in hryvnia should more than double: from UAH 100 in early 2025 to UAH 205 at the end of 2028.

The increase in the cost of cigarettes will be achieved by bringing the excise tax on tobacco products to the European level. Thus, in 2025 it was EUR 78, and at the end of 2028 it will be EUR 90.

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