How much will cigarettes increase in price in Ukraine, and what is behind the price increase?
Another increase in cigarette prices is expected in Ukraine — the cost of a pack will rise by an average of 2–3.5 hryvnia. The reason for this is a planned increase in excise rates on tobacco products.
This was announced by Oleksiy Leonov, a member of parliament from the Servant of the People party, on the Day.LIVE programme. According to him, the country has introduced an updated mechanism for calculating excise tax on tobacco products, e-cigarette liquids, and fuel. These changes are part of a long-term strategy to harmonise Ukrainian legislation with European Union standards.
The MP explained that the increase in excise duty on cigarettes is planned and has been taking place every year since 2018. The aim of this process is to gradually bring the level of excise duty in line with European standards.
At the same time, the Verkhovna Rada, together with the government, decided to slow down the pace of the excise tax increase: the deadline for achieving the target indicators was moved from 2027 to 2029.
Oleksiy Leonov also noted that excise tax accounts for about 10.5% of all revenues to the state budget. In addition to the fiscal effect, the increase in prices for tobacco products, according to him, contributes to a reduction in the number of smokers, which is in line with the public health policy approaches applied in EU countries.
Also, on 1 January 2026, the next stage of excise tax increases began, which also affected the cost of fuel. According to expert Gennady Ryabtsev's estimates, purely arithmetically, this should lead to an average increase in prices at petrol stations of 1.5-2.5 hryvnia per litre, although the actual increase may be less noticeable.
Excise tax, tobacco products, European integration, state budget
