Ukraine’s Tax Service and Law Enforcement Tackle Shadow Tobacco Market

The State Tax Service of Ukraine, in cooperation with law enforcement agencies, is intensifying efforts to combat the illegal turnover of tobacco products. This was announced by the head of the State Tax Service, Ruslan Kravchenko, during a meeting with representatives of the “Ukrtyutyun” association and international tobacco manufacturing companies.

According to expert estimates, the shadow tobacco market currently reaches 12.6%. This leads to significant losses for the state budget and creates unequal conditions for legal businesses. Some companies diligently pay taxes, while others use smuggling schemes and counterfeits.

• Read more: Ukraine Bans Flavored Cigarettes and E-Cigarettes by July 11

“Together with law enforcement, we are actively working to reduce the size of the shadow market. We are strengthening inspections and introducing new control mechanisms, in particular, an electronic excise stamp,” Ruslan Kravchenko noted.

Since the beginning of 2025, the State Tax Service has already conducted:

• 1,069 inspections in the field of tobacco product turnover;
• Imposed more than UAH 11 million in financial sanctions;
• Revoked 312 licenses, of which 167 were due to absence at the place of activity;
• Seized illegal products worth UAH 2.6 million.

Inspections will continue in places where violations of licensing conditions were recorded.

The meeting participants also discussed the launch of the electronic excise stamp. This initiative is intended to make the market more transparent, but manufacturers have expressed concerns about the timely readiness of the system.

“In March, testing of the electronic excise stamp will begin. It will show how ready the market is for this innovation, as the transition to this system is planned for January 2026. Already today, we are working together on bylaws, in particular, on the procedure for marking packs,” Kravchenko emphasized.

The State Tax Service stresses its readiness to cooperate with businesses to de-shadow the market and ensure stable budget revenues.

• Author
• Recent Posts

Follow

Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

Follow

Latest posts by Matthew Ma (see all)

• Russia Aims to Cut Tobacco Consumption by 14.4% by 2030 - February 27, 2025
• Ukraine’s Tax Service and Law Enforcement Tackle Shadow Tobacco Market - February 27, 2025
• Tennessee Bill Requiring FDA Compliance for Vape Shops Passes Committee - February 26, 2025

Related posts:

What is TPD and How Does it Affect Vaping in Europe Can You Sell Vapes on eBay? Policies & Alternatives Vaping Laws in UK – Is Vaping Now Illegal in the UK? Russia Proposes Tobacco and Vape Sales Licensing The Best and Worst States To Vape in the US Best Top 10 Disposable Vape Manufacturers in China You Need to Know