Revenues increased significantly despite the sharp fall in sales of cigarettes.
In 2018 the revenues from tobacco excise taxes to the state Budget reached almost 44 billion, 9.3% more than in 2017. Reported by the Ukrainian center for tobacco control OO Life.
It is noted that tobacco revenues rose amid a sharp reduction in the realization of cigarettes. In 2018, it has decreased from 67 billion to 56 billion, or 16.4%, compared with 2017 year.
The reason for the reduction in cigarette sales associated with the increase in the price of 24,5% with inflation rate of 9.8%.
Just 12 months 2018 the average price of a pack of cigarettes increased from 25.3 to 31.6 hryvnia, or 6.3 hryvnia, of which 4.3 hryvnia is the increase of excise and other taxes, and 2 hryvnia is the tax – free increase in share prices of tobacco corporations that are trying to maintain profitability in the decline in sales of its product.
“Ukraine has positive experience of previous years higher taxes on tobacco products, which contributed not only to increase revenues but also to reduce the prevalence of Smoking,” – said in a statement.
During the period 2008-2018, the average rate of the excise tax on a pack of cigarettes in Ukraine increased almost 30 times, allowing revenues to the state Budget rose from 3.5 billion to 43.6 billion UAH in 2018 while reducing the number of smokers in Ukraine from 10 million to 6.5 million, according to the State statistics service.