On June 10, 2026, the Verkhovna Rada of Ukraine rejected Draft Law #14245 “On Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts of Ukraine regarding the Enhancement of Control Over the Production and Circulation of Tobacco Raw Materials” (the Draft Law).
Despite the stated goal of strengthening control over the production and circulation of tobacco raw materials, the Draft Law contained a number of provisions that raised significant concerns among the business community.
In particular, the Draft Law provided for giving preference to tobacco raw materials of Ukrainian origin, which contradicts the principles of free competition and Ukraine’s international obligations and could pose risks to the investment climate. In addition, the Draft Law proposed including tobacco raw materials in the e-Excise system, which itself is still in the final stages of development, a move that could have complicated its launch and operation. The proposed changes did not address the problem of the illegal tobacco market; instead, they imposed an additional regulatory burden on law-abiding businesses and duplicated existing control mechanisms.
The business community called on the Verkhovna Rada of Ukraine to reject the Draft Law and prevent the introduction of provisions that could negatively affect the competitive environment and the activities of bona fide taxpayers.
AmCham member companies are grateful to the Members of Parliament for the decision to reject the Draft Law.
