The losses to the Ukrainian state budget in 2024 due to the shadow tobacco market are estimated at 21.9 billion UAH, reported Deputy Prime Minister for Innovations, Education, Science and Technology — Minister of Digital Transformation of Ukraine Mykhailo Fedorov.
"These are the results of a study by Kantar Ukraine. The average annual share of illegal tobacco in Ukraine is 16.1%. Illegal products lack excise stamps and are untaxed, resulting in billions slipping past the budget each year, while consumers purchase low-quality goods of unknown origin," - wrote he on Telegram on Thursday.
He noted that efforts are underway to combat the shadow market through e-Excise, an electronic system for the circulation of tobacco and alcohol. "Once we implement the service, products will be traceable throughout their journey - from the manufacturer to the end consumer. Every Ukrainian will be able to verify the legality of a product in just a few clicks via 'Diia'," Fedorov pointed out.
"Businesses will be able to obtain excise stamps without bureaucracy and visits to the tax office, quickly and transparently. The beta test of e-Excise is scheduled for spring 2025," he added.