New taxes will lead to price increases: what to expect in 2026

The government’s draft state budget for 2026 provides for a significant increase in revenues by more than 402 billion hryvnias.

The expected increase in funding is due to higher excise duties on fuel and tobacco products, as well as new fees introduced, particularly on sugary drinks and online sales income. These changes will lead to new price shifts for the population next year.

Change in excise duties on tobacco.

In 2026, the excise duty on cigarettes will increase from 58 to 61 euros per thousand units, and the minimum tax liability will increase from 78 to 82 euros. For tobacco-containing products for electric heating, the tax will increase from 70.4 to 70.8 euros.

Increase in excise duties on fuel

The most significant blow to the budgets of Ukrainians will be an increase in excise duties on fuel, in particular:

on gasoline – by 1.37 UAH per liter;
on diesel fuel – by approximately UAH 3 per liter;
on liquefied gas – by UAH 1.2 per liter.
A gradual increase in excise duties is planned until 2028, at which point the rates will reach a level that complies with EU directives: EUR 359 for gasoline, EUR 330 for diesel fuel, and EUR 250 for gas. This will affect not only fuel prices but also a wide range of goods and services that depend on the cost of fuel.

The draft budget also proposes new tax initiatives:

The introduction of a “tax on OLX” and other online platforms is expected to generate additional revenue of UAH 14 billion.
An excise duty on sweet drinks (carbonated, mineral, flavored with sugar) is projected to collect UAH 8.5 billion.
In addition, the increased military tax rate of 5% will remain in 2026 for all categories of taxpayers, including those working on a simplified taxation system.

All these changes in excise duties and new taxes will automatically affect the final prices of goods. As a result, Ukrainians should prepare for a new wave of price increases in 2026.