Excise Tax Debate: Legality and Tax Benefits

Excise Discussion: Legality and Tax Benefits

In light of recent discussions on differentiated excise rates for cigarettes and electronic cigarettes, Economic Discussion Club expert Oleg Pendzin reveals the motivations of various groups and their consequences in a blog for RBC-Ukraine.

He emphasizes that the legal market for electronic cigarettes (ENDS) in Ukraine is almost 100%, making them less attractive for counterfeit production, unlike cigarettes. Pendzin also considers the possibility of reducing the illegal cigarette market and additional tax revenues for the budget that can be obtained through different excise rates on ENDS and cigarettes.