Cheap cigarettes now will not

The Ministry of Finance submitted to the Parliament a project that installs an additional tax on tobacco available.

Дешевих сигарет тепер не буде

After a long discussion with the tobacco people and public figures, the government submitted to the Parliament a bill that places additional tax burden on cigarettes, which get in the sale at a price below cost and the amount of taxes paid, informs Rus.Media.

That is, in fact introduces a mechanism that makes it impossible to sell cheap cigarettes.

The technique is simple: once the price of the bundle is lowered below the level of the “minimum excise tax multiplied by a factor of 1.65”, the manufacturer is obliged to pay to the Treasury an additional tax: the same minimum salary, multiplied by a factor of 1.4.

The very idea of such nepodalku was first announced this spring. It is noteworthy that it reached the Parliament almost in the same condition. One small but very important exception. The authors of the project (the document was developed in the Ministry of Finance) thought this tool is small, and they have additional leverage. He touches, however, not tobacco manufacturers and sellers.

Thus, the draft prohibits selling in Ukraine cigarettes at a price below 95% of the maximum value specified on the package. Not heeding, entrepreneurs face a fine in the amount of the prices of all tobacco products available in stock. But not less than 10 thousand UAH.

Such measures, according to the text of the bill can be installed in Ukraine from 1 January 2019 to 31 December 2024. Of course, provided that MPs will support the draft in the hall.

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