Ukraine raises tobacco taxes for the third year in a row

On 20 December 2016, the Ukrainian Parliament supported amendments to the tax code to increase the country’s specific tobacco tax by 40% as of 1 January 2017. This is the third year in which Ukraine has raised tobacco taxes by 40%. Experts estimate that the tax increase will result in a reduction of the domestic tobacco market by at least 10% in 2017, and that the tobacco taxes will generate no less than Hrv 40 billion ($1.4 billion) this year – Hrv 7 billion more than in 2016.

High taxes on tobacco products are known to be the single most effective policy for decreasing tobacco use and its uptake among young people.