The government abolished the minimum retail price of cigarettes

The government has refused idea to impose minimum retail prices on cigarettes, and instead decided to increase the ad valorem rate from 12% to 15%. This is stated in the adopted on 11 February at the government meeting on the draft law, which is available to «Economic truth».

«Implementation of MRC is contrary to the Directive of EU», — stated in the explanatory note to the bill.

As noted, the decision to raise Adalar due to a desire to harmonize tax policy on taxation of tobacco products with the requirements of the European legislation and to equalize the tax burden on cheap and expensive cigarettes.

In accompanying the draft law documents do not specify how it will affect the revenues from excise duties in the budget.

Recall that in Ukraine since January 1, 2016 came into force increasing the amount of the excise duties on cigarettes, beer and alcoholic beverages.

Appropriate changes were incorporated in the law «On amendments to the Tax code and certain legislative acts of Ukraine on ensuring balance of the budget revenues in 2016».

The excise tax on cigarettes at specific rate from 1 January 2016 have increased in Ukraine by 40% to 318,26 UAH per 1 thousand pieces. On beer doubled to 2.48 UAH per liter. All other recommendations have also been made, except for the issue of excise tax on wine — it remained at the same level is 0.01 hryvnia per liter.

The government abolished the minimum retail price of cigarettes 12.02.2016

Февраль 12th, 2016 by
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