Ukraine: Revenues From Excise Tax On Tobacco Up UAH 1.6 Billion

Source from:  Ukrainian News Agency 09/17/2013

The Ministry of Incomes and Levies has announced that revenue from the excise tax on tobacco products increased by UAH 1.6 billion to UAH 12.3 billion in the period of January-August.

"In the first eight months of 2013, UAH 12.3 billion was mobilized into the general fund of the state budget from the excise tax on manufactured tobacco products in Ukraine. Compared with the same period of last year, revenues from the excise tax on tobacco rose by UAH 1.6 billion (15.2 %)," the statement said.

The share of the excise tax on tobacco in total budget revenues from excise duties since the beginning of the year increased from 60% to 70%.

"The current excise system facilitates a more complete and timely receipt of the excise duty on tobacco products and allows avoidance of tax minimization mechanisms based on manipulation of prices," the ministry said.

The ministry stressed that the increase in revenue from the excise tax on tobacco occurred against the backdrop of a reduction in the consumption of tobacco products because the volume of sales of tobacco products on the Ukrainian market fell by 13% in the first seven months of the year.

As Ukrainian News earlier reported, the parliament raised the excise tax on cigarettes by 47% to UAH 163 per 1,000 cigarettes in December. The relevant law came into force on January 1, 2013. Enditem