JTI Ukraine has warned of the risk of the tobacco market collapsing due to the e-excise duty
Oleksandr Farkosh, CEO of JTI Ukraine, made this statement in an interview with RBC-Ukraine.
Oleksandr Farkosh stated that there are less than five months to go before the launch of the state-run eAkcyz system, but the platform is still being finalised.
According to him, if manufacturers are ready for the electronic excise stamp but retailers are not, legal products will effectively be unable to reach retail outlets.
Farkosh warned that without the full configuration of systems and processes, this could lead to the collapse of the legal market segment.
What the budget losses could be
According to JTI Ukraine’s estimates, in the event of disruptions during the launch of e-Excise, the budget could lose up to 500 million hryvnias a day.
Farkosh noted that the company is already spending tens of millions of hryvnias on adapting its internal processes and production to the new requirements.
Why the system is causing concern
According to the CEO of JTI Ukraine, the Ukrainian e-Excise model is significantly more complex than its European counterpart, Track & Trace.
It additionally covers not only tobacco products but also alcohol, the entire retail sector with tens of thousands of points of sale, and shifts the payment of excise duty to an electronic stamp.
Farkosh emphasised that such elements are not present in the European system.
How many operators have already been registered
According to the Ministry of Digital Transformation, less than 1% of retail operators are currently registered in the system.
It is precisely the retail sector’s lack of readiness that could become one of the key risks to the system’s launch.
What is eAkciz?
eAkcyz is the state-run electronic excise labelling system.
Its launch is scheduled for 1 November 2026.
The system is designed to monitor the movement of excise goods, in particular tobacco products and alcohol, throughout the entire supply chain — from the manufacturer to the retail outlet.
What is known about the European equivalent
The Ukrainian model is based on the European Track & Trace system, which has been in operation in the EU since 2019.
However, according to business representatives, the Ukrainian version has broader functionality and a larger number of participants who are to be connected to the platform by the time of its full launch.
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