As of January 1, 2021, the excise tax rates for tobacco-containing Heet-Sticks increased by 4.2 times to 1,456 UAH per 1,000 pieces.
The corresponding draft law No. 1210 was signed by the president in May, the Ukrainian news agency reports.
Accordingly, a commodity code was introduced for Heet Stick and the excise duty rate for this was set at UAH 1,456 per 1,000 pieces.
Previously, the sticks fell under the code for tobacco and tobacco substitutes (2403), and the excise tax for this category was 949.8 UAH per 1 kilo in 2019, while in 2024 it was planned to increase it by 20% annually to 2,363.4 UAH per kilo.
As of January 1, 2021, the rate will be 1,456.33 UAH per 1,000 pieces, with an annual increase of 20% to 2,516.54 UAH per 1,000 pieces in 2024.
In addition, according to Bill No. 1209-1, signed by the President in February, Heet-Sticks were classified as a separate product subgroup “Tobacco product for electric heating TVEN” from the general product group “Tobacco for” separate industrial production “from January 1st.
The tariff for this is 1.8 EUR per 1 kilo of sticks.
As the Ukrainian news agency previously reported, Philip Morris Ukraine expects that Bill No. 1210, signed by President Volodymyr Zelenskyy, setting the consumption tax rate for tobacco heet sticks at UAH 1,456 per 1,000 for 2021, will lead to an increase in the Illegals will lead market 5 times.
Also, such an increase in excise duty can add more than 50% to the value of the sticks themselves.
In May, Zelenskyy signed a law introducing the commodity code for tobacco-containing heet sticks and setting the excise tax rate for 2021 at UAH 1,456 per 1,000 pieces.
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