Smoking will become an expensive pleasure: new prices will hit wallets – what are the costs of a bad habit

In 2025, Ukrainians will face a significant increase in cigarette prices, and avoiding this process will be impossible. This is due to the introduction of a law on raising excise duties on tobacco products. According to the Inflation Report by the National Bank of Ukraine for April 2025, a significant increase in excise tax rates is planned for this year.

The excise hikes will continue through 2026-2028, but 2025 will be a real challenge for the finances of Ukrainian smokers.

Under the new legislation, from April 1 to December 31, 2025, manufacturers and importers will be required to use an upward adjustment coefficient of 1.1 to calculate the minimum excise tax liabilities. This step is related to the unregulated tax norm in cigarette prices in 2024, which was set at 60%.

In practice, cigarette prices will rise gradually but inevitably, as stocks of products with old excise stamps run out. This means prices for consumers will increase each month.

According to the National Bank of Ukraine, in 2024, premium cigarettes rose by 23.4%, reaching a price of 118.7 UAH per pack. In just the first three months of 2025, prices increased by another 7.8%, bringing the average price of a premium pack to around 128 UAH. This is only the beginning of a long and challenging process for smokers.

According to the State Statistics Service, spending on cigarettes accounts for 3.9% of Ukrainian household consumption expenditures, which is close to the 4.0% spent on alcohol. If prices continue to rise, spending on tobacco products could soon exceed alcohol expenditures, which would significantly impact the budgets of many Ukrainian families.