Ruslan Kravchenko: State Tax Service, together with the law enforcement officers, is working to reduce volume of shadow tobacco market

Press service of the State Tax Service of Ukraine, published 24 February 2025 at 17:50 Chapter: News

State Tax Service, together with the law enforcement officers, is working to reduce volume of shadow tobacco market. This was stated by Head of the State Tax Service Ruslan Kravchenko during the meeting with representatives of the Ukrtyutyun association and product manufacturing companies that are part of a network of well-known international companies.

Parties, during the meeting, discussed questions related to combating illegal production and circulation of tobacco products and introduction of the electronic excise mark. 

"Shadow tobacco market currently reaches 12.6% according to experts. This is not only a colossal loss to the budget, but also unequal conditions for legal producers. Some pay taxes in a good faith, while others prefer smuggling, counterfeiting and corruption schemes. Together with the law enforcement officers, we are actively working to reduce volume of shadow market" – stated Ruslan Kravchenko. 

Since the beginning of 2025 alone, the State Tax Service:

- conducted 1069 audits in the tobacco product sphere;

- imposed 11+ million UAH of financial sanctions;

- canceled 312 licenses, 167 of them for absence from the activity place;

- seized illegal products worth 2.6 million UAH.

Audits in places where violations of license conditions have been recorded will be continued.

Participants also discussed introduction of the electronic excise mark, as this is important step for the market transparency. 

"Manufacturers fear that the system will not be ready for a full-fledged launch in January 2026. Testing of the innovation will start in March. It will show real readiness of the market to switch to the electronic excise mark. However, today we will jointly develop relevant by-laws, particularly procedure for marking packs" – stated Ruslan Kravchenko.

He emphasized that the State Tax Service is open to dialogue and effective cooperation with business to un-shadow the market and sustainably fill the budget.