Deputy Melnichuk proposes to Rada cigars entry duty 10 times shortening
14.02.2007 12:00 "Agro Perspectiva" (Kyiv) —
People deputy Mykhailo Melnichuk has proposed to Verkhovna Rada to reduce 10 times cigars entry duty by means of bringing changes to some Ukrainian Laws, reported Verkhovna Rada press-service referring to draft Law «About Bringing Changes to Some Laws of Ukraine Regarding Tobacco Products Circulation» (registered in Parliament Feb 8). As to draft Law, cigars/cigarillos import tax should be reduced from current EUR5,0 per 100 cigars/cigarillos down to 10% of total imported cigars/cigarillos lot cost (yet not below EUR5,0 per 1000) in case of preferential tariff and from current EUR10,0 per 100 cigars/cigarillos down to 10% of total imported cigars/cigarillos lot cost (yet not below EUR10,0 per 1000) in case of full tariff. As well, draft Law stipulates tobacco entry duty curtailing from current EUR2,5 per kg down to EUR1,0 per kg (in case of preferential tariff) and from current EUR5,0 per kg down to EUR2,0 per kg (in case of full tariff). Besides, draft Law suggests cigars/cigarillos excise duty rate should be fixed UAH30,0 per 1,000 sold cigars/cigarillos (against current UAH20,0 per 100 sold). Tobacco excise duty should be lowered from current UAH10,0 per kg down to UAH5,0 per kg. As to draft Law explanatory note, cigars/cigarillos and tobacco entry duties shortening/excise duties changes will result in smuggling significant lowering/State budget UAH40,3 mn additional income; besides, entry duties shortening will promote tobacco products legal import, thus assuring State budget EUR44,0–55,0 mn additional income. As to press-service, on Feb 12 draft Law was passed over for corresponding VR Profile Committee examination. As to Agro Perspective earlier report, Nov 17, 2006 Rada had adopted Law «About Bringing Changes into Some Laws of Ukraine About Payment for Licenses and Excise Duty on Production of Spirits, Alcohol Drinks and Tobacco Products.» As to Law, non-filter cigarettes excise duty was boosted up to UAH5,0 per 1,000 (filter cigarettes — up to UAH11,5 per 1,000; smoking, chewing and snuffing tobaccos — up to UAH12,0 per kg); besides, ad valorem excise duties on all tobacco products were raised from 8% up to 10%.
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