3000 entrepreneurs lost alcohol licenses due to employee salaries

In Ukraine, control over businesses trading in alcohol and tobacco has been intensified: the tax service has already canceled over 2,900 licenses due to violations of salary requirements. Thousands of entrepreneurs are also at risk. This is reported by the People's Front.

Cancellation of alcohol licenses: why businesses are closing

From October 2025, sellers of excise goods will have strict requirements regarding wage levels. According to acting head of the State Tax Service Lesya Karnaukh, employers must pay employees no less than the established minimum wage.

In 2026, the following norms apply:

• within and up to 50 km from regional centers - no less than 2 minimum wages (17,294 UAH);

• outside these zones for stores up to 500 m² - no less than 1.5 minimum wages (12,970.5 UAH).

In February-March alone, tax officials identified risks of violations in 6,600 entrepreneurs and conducted about 1,500 audits. As a result, over 2,900 licenses have been revoked or closed.

Other violations were also recorded:

• sale of goods without excise stamps;

• price manipulations;

• absence of fiscal checks.

The total amount of fines for these violations reached almost 17 million UAH. Due to new requirements, part of the business has already left the market: the number of licensees has decreased by about 3,000.

Excises on cigarettes: how prices will rise

Separately, Ukraine continues to increase excise duties on tobacco products. In April, cigarette prices rose by another 8-10 UAH per pack.

Economist Oleg Hetman explained that this is part of the gradual approach to EU standards. According to the plan, the excise rate should reach a minimum level of 90 euros per thousand cigarettes:

• 2025 - about 80 euros;

• 2026 - 86 euros;

• 2027 - about 90 euros;

• 2028 - full attainment of the EU minimum level.

The share of excise duty in the price of cigarettes should constitute 60%, and each subsequent increase may add another 15-20 UAH to the pack.

VAT for individual entrepreneurs: what changes are planned

The Ministry of Finance of Ukraine is also discussing tax changes for entrepreneurs. In particular, it is proposed to introduce VAT for individual entrepreneurs with an annual income of over 4 million UAH starting from January 1, 2027.

Such entrepreneurs must switch from a simplified taxation system to a general one. At the same time, the initiative is still under discussion due to the risks of increasing tax burden and bureaucracy.

As a reminder, a new study presented at the annual conference of the American Society of Clinical Oncology showed a sharp increase in the number of deaths from cancer caused by alcohol consumption. In 1990, there were about 12,000 such cases per year, and by 2021 this figure has increased to over 23,000.