04 January 2021, Monday, 17:31 286

4.2 Times Increase Of Excise Tax Rate On Tobacco Heet Sticks To UAH 1,500 Per 1,000 Pieces Entered Into Force

Редактор: Daria Zubkova

From January 1, 2021, the excise tax rates for tobacco-containing heet sticks have increased 4.2 times to UAH 1,456 per 1,000 pieces.

The corresponding bill No. 1210 was signed by the President in May, Ukrainian News Agency reports.

According to it, a commodity code for heet stick has been introduced and the excise tax rate on them has been set at UAH 1,456 per 1,000 pieces.

Previously, the sticks fell under the code for tobacco and tobacco substitute (2403), and the excise rate for this category was UAH 949.8 per 1 kilo in 2019, while an annual increase of 20% to UAH 2,363.4 per kilo in 2024 was provided.

From January 1, 2021, the rate is UAH 1,456.33 per 1,000 pieces with an annual increase of 20% to UAH 2,516.54 per 1,000 pieces in 2024.

Besides, according to the bill No. 1209-1, signed by the President in February, from January 1, heet sticks were separated into a separate product subgroup "tobacco-containing product for electric heating TVEN" from the general product group "tobacco for industrial production".

The tariff for it is set at EUR 1.8 per 1 kilo of sticks.

As Ukrainian News Agency earlier reported, Philip Morris Ukraine believes that bill No. 1210, signed by President Volodymyr Zelenskyy, which sets the excise tax rate on tobacco heet sticks at UAH 1,456 per 1,000 pieces for 2021, will lead to an increase in the illegal market 5 times.

Besides, such an increase in excise tax can increase the value of the sticks themselves by more than 50%.

In May, Zelenskyy signed a law that introduced the commodity code for tobacco-containing heet sticks and set the excise tax rate on them at UAH 1,456 per 1,000 pieces for 2021.

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