AmCham Ukraine welcomes the latest results of the systematic, coordinated efforts of law enforcement agencies aimed at combating the illegal production and circulation of excisable goods – the exposure of a large-scale scheme involving the illicit manufacturing and distribution of products for electronic cigarettes.
According to publicly available information, law enforcement authorities have seized significant volumes of excisable goods, raw materials, and equipment with a total estimated value of approximately UAH 30 million. Law enforcement estimates indicate that timely detection of the scheme helped prevent losses to the state budget from unpaid excise duties in the amount of approximately UAH 20 million.
The shadow segment of the excisable goods market remains a significant challenge for Ukraine’s economy. In particular, according to research by Kantar Ukraine, approximately 93% of the electronic cigarette market operates in the shadow economy without tax compliance or quality control. At the same time, experts estimate that the state loses approximately UAH 7.5 billion annually in tax revenues due to the existence of the illicit market in electronic cigarettes and related liquids.
The implementation of this comprehensive operation serves as a compelling example of effective interagency cooperation in combating the shadow economy. The dismantling of a full-cycle illicit supply chain of excisable goods has dealt a significant blow to illegal practices that distort fair competition and deprive the state budget of substantial revenues.
AmCham Ukraine expresses its gratitude to the Economic Security Bureau of Ukraine and the Prosecutor General's Office for their effective work on this case and looks forward to further results in combating the illegal production and circulation of excisable goods.
