Tuchak Tetiana, PhD in Economics, Associate Professor, Associate Professor at the Department of Tax Administration, State Tax University, Irpin, Ukraine

ORCID: 0000-0003-4696-924X
e-mail: Tanyatuchak75@gmail.com

Shpak Yana, Undergraduate Student (Bachelor’s level), State Tax University, Irpin, Ukraine

ORCID: 0009-0009-9734-3889
e-mail: iam.yana.shpak1008@gmail.com

Matsenko Viktoriia, Undergraduate Student (Bachelor’s level), State Tax University, Irpin, Ukrainе

ORCID: 0009-0003-6596-2630
e-mail: matsenko.vika2004@gmail.com

Directions for Reforming Ukraine’s Excise Policy: Fiscal Aspects and European Standards

Abstract. Introduction. In the context of martial law and the implementation of the IMF Extended Fund Facility (EFF) program, fiscal sustainability has become a paramount issue for Ukraine. This article examines the strategic role of excise taxation as a key financial instrument for regulating socio-economic processes. The study highlights the necessity of timely budget replenishment for social payments and defense needs through a comprehensive update of theoretical approaches to state policy mechanisms. Special attention is paid to the integration of European standards (acquis EU) and the introduction of innovative control measures, specifically the e-Excise system, aimed at minimizing the shadow economy. The relevance of the research is driven by rapid changes in the regulatory framework during 2024-2026 and the adoption of the National Revenue Strategy until 2030 (NRS).

Purpose. This study aims to analyze the current state of excise taxation in Ukraine, investigate regulatory updates for 2024-2025, and evaluate strategic directions for the sector’s development in line with the National Revenue Strategy until 2030.

Results. The circulation of alcohol and tobacco products in Ukraine is characterized by high state control, legally grounded in the Law of Ukraine No. 3851-IX. The research analyzes key Cabinet of Ministers’ resolutions that ensure digitalization of the sector, particularly the transition to electronic licenses and the e-Excise system (Resolution No. 1087). A detailed roadmap for reforming excise policy until 2030 is examined, highlighting the transition to excise rates denominated in Euros for tobacco and fuel to protect budget revenues from devaluation. Forecasts indicate that additional fiscal revenues could reach 13.8 billion UAH annually by 2028 due to the harmonization of tobacco tax rates with the EU minimum of 90 EUR per 1000 units. Furthermore, the study analyzes the implementation of the Sugar-Sweetened Beverages Tax (SBT) planned for 2027, estimating that it will generate approximately 8.3 billion UAH annually and serve as a social investment by reducing the incidence of diabetes and cardiovascular diseases.

Conclusions. Ukraine’s tax policy has decisively shifted toward European integration. The transition to Euro-denominated rates and the implementation of the e-Excise system are crucial steps to eliminate grey schemes and ensure predictability for legal businesses. Future research should examine the impact of excise rate changes on population purchasing power and the elasticity of demand for innovative nicotine-containing products.

Keywords: excise tax; excise policy; National Revenue Strategy; European integration; e-Excise; fiscal sustainability; harmonization of legislation; tobacco products; fuel excise; Sugar-Sweetened Beverages Tax.

References:

1. Verkhovna Rada of Ukraine. (2026). Tax Code of Ukraine. №2755-VI. https://zakon.rada.gov.ua/laws/show/2755-17.
2. Verkhovna Rada of Ukraine. (2026). On state regulation of production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes, and fuel. №3817-20. https://zakon.rada.gov.ua/laws/show/3817-20#Text.
3. Verkhovna Rada of Ukraine. (2024). On amendments to the Tax Code of Ukraine regarding the implementation of European Union law provisions on excise duty. №3878-IX. https://zakon.rada.gov.ua/laws/show/3878-20#Text.
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