One of Ukraine's largest tobacco manufacturers is suspected of evading ₴2.3 billion in excise taxes
The Ukrainian state budget has suffered losses of more than 2.3 billion hryvnias due to a large-scale excise tax evasion scheme. Detectives from the Economic Security Bureau have notified the director of one of the major tobacco manufacturers that he is under suspicion.
According to the investigation, the company, which operated in the Rivne region, was involved in the large-scale production and sale of unaccounted-for cigarettes.
To conceal their illegal activities, in 2023–2024, company officials staged the “disappearance” of over 1,100 metric tons of raw tobacco. In reality, the raw materials were used to manufacture products that were subsequently sold without paying excise tax.
During audits, tax authorities determined that over 2.3 billion hryvnias in excise tax had gone unpaid, a finding later confirmed by a forensic economic analysis.
The company’s director has been notified of charges under Part 3 of Article 212 of the Criminal Code of Ukraine—tax evasion on an especially large scale.
One of Ukraine’s largest tobacco manufacturers had been operating in the Rivne region for a long time. The company has ceased operations, and its license has been revoked.
In fact, this is one of the key players in the black market.
This was reported by the Economic Security Bureau of Ukraine.
As a reminder, Japan Tobacco International Ukraine filed a statement with the State Fiscal Service (SFS) refusing to purchase excise stamps worth 350 million hryvnias due to Parliament’s support of Bill No. 1049.
Meanwhile, a bill has been registered in parliament that would increase the excise tax on tobacco products by a factor of 2.5. If the bill is passed, the average price of a pack of cigarettes will rise from 36 to 82–100 hryvnias.
