By the end of this year, almost 70% of the electronic cigarette market may be in the shadows, and the state budget will lose 5 billion Hryvnias in revenue from the industry, the expert association warns.
The Ukrainian Vaping Association (UVA) called on the authorities to reconsider Law No. 1978-IX prohibiting the importation and manufacture of flavored electronic cigarettes. This was announced by UVA director Yuriy Suptel in an interview on the Dengi.ua website, published the previous day.
According to him, in 2022, about 2 billion hryvnias were collected from taxation of the e-cigarette industry, and in 2023 it is planned to pay about 5 billion hryvnias in taxes and fees to the state budget. But because of the provisions of the law, its authors did not consult the market operators, the state will not receive these funds, said Suptel.
He said that about 7 million people in Ukraine smoke regularly, but over the past five years, almost 1 million have “switched” from traditional cigarettes to electronic cigarettes. The ban on flavored e-cigarettes in legal circulation encourages smokers to look for alternatives in the illegal market: in anonymous Telegram channels and online stores.
According to Suptel, by the end of this year, almost 70% of the e-cigarette market may be in the shadows, and after the stock of smoking cigarettes imported earlier is exhausted, up to 90% of the market will go to shadow In turn, smugglers and shadow traders receive about 500 million hryvnias in profit every month since August.
“In the shadow market, it is impossible to ensure compliance with the laws that regulate the sale of cigarettes, electronic devices and other tobacco products. For example, the access of minors to nicotine products is not limited. The National Police of Ukraine But, unfortunately, they do not have enough resources : the phenomenon is too widespread, “said the head of UVA.
Suptel said that China’s experience showed that a complete ban led to the growth of e-cigarette smuggling and huge losses for the budget. He called on the authorities to take legal control of the e-cigarette market by changing the text of Law No. 1978-IX.
“The industry can develop under balanced state control – some operators, for example, plan to start producing such products on the territory of Ukraine, contribute to the economy through export, help in GDP growth, create jobs. However, due to the unpredictability of Ukrainian legislation, this idea is currently rejected by them. We hope that the government and deputies will think about the absurdity of the ban and make the right decision, ” concluded the head of the Ukrainian Vaping Association.
We remind you that according to data for 2022, in Ukraine the level of illicit trafficking in tobacco products has reached a new ultra-high level – 20%. Correspondent.net wrote in detail how this would result for the state and smokers.
It was also reported that the Verkhovna Rada approved the introduction of electronic excise stamps on alcohol and cigarettes.
Source: korrespondent
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