Draft Law of Ukraine

"On Amendment of Some Laws of Ukraine Aimed at Increasing Revenues to the Pension Fund of Ukraine"

The draft envisages creating an insurance fund designated for financing transitional period of implementing pension reform in Ukraine within the Pension Fund of Ukraine.

Sources for the insurance fund are to be money from the duty for obligatory state pension insurance paid by:

• producers and importers of tobacco products totaling UAH 1.5 per 1,000 non-filter cigarettes, UAH 2.5 per 1,000 filter cigarettes and UAH 6 per 100 tobacco cigars and cigarillos;
• producers and importers of natural coffee, chocolate products and tires totaling 5% of the cost of the produced or imported goods;
• producers and importers of alcoholic beverages totaling 5% of the declared retail price for alcoholic beverages produced or imported thereby.

The draft envisages also raising the rate of excise duty for tobacco filter cigarettes (code 2402 20 002 of the Harmonized Commodity Description and Coding System) from UAH 10 to UAH 11.5 per 1,000 units of the sold products.

Implementation of the draft's provision will raise tax pressure over subjects of entrepreneurial activity producing and selling the above-mentioned goods.