Excise stamps for alcohol and tobacco have become more expensive in Ukraine

The Cabinet of Ministers of Ukraine, by Resolution No. 1259, increased the fee for the production of excise tax stamps by approximately 30 percent. The new rates took effect on the date of the document’s official publication. No transition period is provided for manufacturers and importers.

The resolution introduces amendments to the first paragraph of Section 5 of the Regulations on the Production, Storage, and Sale of Excise Tax Stamps, approved by Cabinet of Ministers Resolution No. 1251 of December 27, 2010.

Upon the resolution’s entry into force, the cost of manufacturing excise stamps is as follows:

• For alcoholic beverages—0.46044 UAH per stamp, instead of the previous 0.3537 UAH. This represents a 30.2% increase.
• For tobacco products, electrically heated tobacco products (EHTPs), and e-cigarette liquids—0.2144 UAH per stamp instead of 0.1643 UAH. This is a 30.5% increase.

The increase in rates will affect the costs of companies that order excise stamps in large quantities.

Specifically, an importer who purchases 1 million stamps annually for alcoholic beverages will pay an additional approximately 106,700 UAH.

For a tobacco manufacturer with an annual order volume of 100 million stamps, the additional costs will exceed 5 million UAH.

Despite the increase in the cost of stamps, other rules governing their circulation remain unchanged. Specifically, the following remain in effect:

• the procedure for ordering excise stamps;
• the requirements for stamp samples and the details specified on them;
• the rule that the cost of stamps ordered but not received is not refunded.

Consequently, the new rates will increase costs for manufacturers and importers of alcohol and tobacco products, while the ordering procedure and basic requirements for excise stamps remain unchanged.

This was reported by LIGA ZAKON.

Previously, the Cabinet of Ministers of Ukraine had abolished the fixed deadlines for submitting preliminary applications and calculations for the purchase of excise tax stamps. The changes apply to taxpayers engaged in the production and distribution of alcoholic beverages, tobacco products, and e-cigarette liquids.

In Kremenchuk, law enforcement officials uncovered an illegal tobacco production operation. During the searches, they seized two industrial production lines, approximately 38 metric tons of raw tobacco, and over 240,000 packs of counterfeit cigarettes. The estimated value of the seized property is approximately 50 million hryvnias.