According to the babel network of Ukraine, the Dnipropetrovsk regional branch of the Ukrainian Tax Service issued a reminder that one-time electronic atomization needs to pay consumption tax in the future. The judgment here is that this may be a one-time impact on Ukraine and will also fight against illegal one-time.
The President of Ukraine, Volodimir Zelensky, recently signed Act No. 8287, introducing an electronic excise duty on tobacco products and e-liquids from January 1, 2026.
The program will make it possible to trace the movement of alcohol, tobacco products, and e-atomized liquids from manufacturer/importer to final consumer. It can also control the completeness and timeliness of the payment of excise taxes on such goods. Does this mean that three years from now Ukraine will have an electronic atomized consumption tax, and will also introduce a traceability system, and that mandatory labelling of alcohol and tobacco products will also be implemented in this country?
Consumption tax on electronic atomization, which will be a further step for Ukraine on electronic atomization.
In July this year, Ukraine said that a ban on flavored electronic nicotine delivery system (ENDS) products other than tobacco flavor will come into effect on July 11.
In addition, from January 11, 2024, a combination of text and picture warnings will be required on 65% of the areas on both sides of the package. The fine for violations is 30,000 Ukrainian hryvnia ($812) and 50,000 Ukrainian hryvnia for each subsequent violation.
Ukraine, a country with a population of more than 40 million, has more local tobacco consumers, at least 6 million consumers, of which more than 2 million potential electronic atomization users are intended. On the other hand, it can be said that it is the largest electronic atomization consumption region in Eastern Europe, of which these electronic atomization brands are more active in the market. Examples include VapeBros, J WelL, VapeOnly, JOYETECH, etc. Also an important HNB market, Philip Morris International has established a factory in Ukraine.
More importantly, like many European countries, it quickly occupied the Ukrainian market at one time.
Based on the different distribution channel network, the one-time supply for many electronic atomization users is available, in part because products like open system are difficult to sell in convenience stores dominated by self-service and fast transactions. But as a semi-legal product one-time, it provides a choice.
It can also be seen that the restrictions of the Eastern European market, mostly in terms of taxation, combating illegality, and regulating the use of scenarios, will also form a new operating system, different from that of Western Europe. In particular, Chinese companies that specialize in Eastern European markets need to pay more attention.