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Philip Morris – PHILIP MORRIS ASKS UKRAINIAN PRESIDENT TO SUPPORT ALTERNATIVE PROPOSALS ON RISING TAXES ON TOBACCO

Judie Simms by Judie Simms
November 27, 2020
in Philip Morris
0

Home » Philip Morris – PHILIP MORRIS ASKS UKRAINIAN PRESIDENT TO SUPPORT ALTERNATIVE PROPOSALS ON RISING TAXES ON TOBACCO

Philip Morris – PHILIP MORRIS ASKS UKRAINIAN PRESIDENT TO SUPPORT ALTERNATIVE PROPOSALS ON RISING TAXES ON TO(BA)CCO

PrJSC Philip Morris Ukraine, a big tobacco producer, proposes to exchange a 320% tax improve on tobacco merchandise for electrical heating, which ought to come into drive on January 1, 2021, with an annual improve of 50% throughout 2022-2025 or 200% in 2021 and 20% in subsequent years.
In keeping with the revealed letter of Philip Morris Ukraine CEO Konstantinos Salvaras to the president of Ukraine, a gradual improve within the excise tax on tobacco merchandise for electrical heating by 50% per yr or by 200% in 2021 and by 20% in subsequent years will save the market from a complete transition to the shadows and produce extra revenues to the state funds than a pointy improve within the excise tax fee by 320%.
“We urge the government to move away from the practice of unpredictable and unstable tax policy, which affects both the attitude of investors and the economy of the country. Tax increases should be gradual, not fourfold,” the Philip Morris letter says.
The corporate reported that the federal government and academia share the imaginative and prescient of a gradual improve within the tax fee. Thus, the Ministry of Financial Growth, Commerce and Agriculture helps the concept of accelerating the speed on tobacco merchandise for electrical heating by 50% from January 1, 2021 and by 50% throughout 2022-2025, and a research performed by the Institute for Economics and Forecasting of the Nationwide Academy of Sciences of Ukraine exhibits {that a} gradual improve within the excise tax on tobacco merchandise for electrical heating will present extra UAH 18.7 million of revenues to the state funds in comparison with a pointy improve within the tax fee.
In keeping with Philip Morris’ estimates, a pointy improve in excise taxes will result in the lack of potential and actual investments, state funds revenues, a rise within the degree of smuggling, and a battle with EU laws.

Associated

PHILIP MORRIS, TAXES, TO(BA)CCO


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