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Rada Deputies Plotnykov (PR), Hryhorovych (OU-PSD), Dubil (BYT) Suggest Raising Exercise Duty On Cigarettes From 16% To 20% (19:27, Tuesday, October 14, 2008)

Verkhovna Rada deputies Oleksii Plotnykov of the Party of Regions, Lilia Hryhorovych of the Our Ukraine People's Self-Defense Bloc, and Valerii Dubil of the Bloc of Yulia Tymoshenko have proposed that the parliament raise the ad valorem exercise duty rate on filter and non-filter cigarettes made from tobacco from 16% to 20%.

This move is stated in bill No.3281 amending the Law on Excise Duty Rates on Tobacco Goods. The bill was registered in the parliament on October 9.

The lawmakers suggest an ad valorem exercise duty not in percent to sale proceeds from goods, but in percent to maximum retail price.

In addition, all other types of tobacco goods must be levied with an ad valorem exercise duty of 20% of maximum retail price.

Presently, the ad valorem exercise duty is 8% of sales proceeds on cigars, chewing tobacco and snuff tobacco, 10% on smoking tobacco, and 0% on manufactured tobacco substitutes.

The deputies also suggest setting the following specific excise duty rates (in lumps sums on one item): UAH 60 on 100 cigars (currently, it is UAH 30), UAH 60 on 1,000 filter cigarettes (UAH 30), and UAH 35 on 1,000 non-filter cigarettes (UAH 12.5).

Industrial tobacco and its substitutes are supposed to have a specific rate of UAH 25 per kilogram instead of the current 0%, smoking tobacco UAH 25 per kilogram instead of UAH 12, chewing and snuff tobacco UAH 10 per kilogram instead of UAH 5.

In keeping with the bill, total sum of excise duty on each cigarette brand cannot be less than UAH 50 per 1,000 non-filter cigarettes (currently, it is UAH 18), and less than UAH 100 per 1,000 filter cigarettes (currently, it is UAH 40).

As Ukrainian News earlier reported, the Verkhovna Rada raised excise duty rates on tobacco goods in August.



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