Excise duty on cigarettes will not be upgraded

Posted by Cigarettes
Aug 25 2009

Deputy head of the budget committee, Alexander Peklushenko reported that the Committee of the Verkhovna Rada on the budget does not include the growth of excise tax on cigarettes in 2009. This statement came in response to the proposals deputy Dmitry Vetvitskogo to increase excise tax on tobacco products.
Alexander Peklushenko believes that raise the excise tax on cigarettes in the economic crisis is unreasonable and anti-market decision. According to the deputy head of the budget committee, documents with similar plans for the current year available. The consequence of increasing excise duty on cigarettes may be only an increase in the shadow sector, but not get rid of bad habits.
According to expert estimates, raising the excise tax on cigarettes in 2,5 times, which occurred in May this year, did not cause the expected impact. Instead of the planned growth of payments to the budget in May was a shortfall of about 40% of expected income, which is about 400 million UAH.

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