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)

• Pennsylvania Vape Registry Law Threatens to Shut Down Local Shops - June 27, 2026
• Why Vapes and Power Banks Are Prohibited in Checked Luggage - June 27, 2026
• Vermont Enacts Act 148: New Law Bans Deceptive Vapes, Hikes Retailer Fines - June 27, 2026

Related posts:

CASSAA Video Debunking Common Vaping Myths Philippine DTI Revises Technical Regulations for Vape Products UK Has 4.7 Million Adult Vapers in 2023, ASH Research Shows Spain’s Health Ministry Proposes Ban on Flavored Vapes The Ultimate Guide to Traveling with CBD Oil in Europe Where Can You Vape in Italy? Your 2025 Guide