Starting from 2026, Ukrainians will face a significant increase in fuel prices, cigarettes and soft drinks due to higher excise taxes as proposed in the state budget project. The new rates will bring Ukraine closer to European standards, and the budget will be supplemented by 402 billion hryvnias. These changes are outlined in the state budget project for 2026.
When will excise taxes on cigarettes and fuel rise?
The government plans to gradually increase excise taxes until 2028 to reach EU normative levels. In particular, in 2026, the following rates will change:
Cigarettes: excise tax will rise from 58 to 61 euros per thousand pieces, minimum tax liability will increase from 78 to 82 euros.
HEETS (tobacco products for electric heating): excise tax will rise from 70.4 to 70.8 euros.
Fuel:
Gasoline: 300 euros per thousand liters (+1.37 UAH/l).
Diesel: 253.8 euros (+2.98 UAH/l).
Liquefied gas: 198 euros (+1.2 UAH/l).
Alcoholic beverages will avoid an increase in excise taxes, but the rise in fuel prices will impact logistics, affecting the cost of many goods.
Will new taxes be introduced in Ukraine?
The government will also introduce new taxes that still need approval:
Excise tax on sweetened and flavored drinks.
Sales tax on digital platforms, such as OLX, which will bring in up to 14 billion hryvnias.
The military tax of 5% will remain for businesses and entrepreneurs under the simplified tax system. These changes are aimed at funding state needs during a difficult economic period, but they may complicate life for Ukrainians, as fuel is a key factor in the cost of many goods and services.
Against the backdrop of these changes, vegetable prices are falling in Ukraine due to harvests increasing supply in the market. At the same time, the prices of chicken eggs, which had been stable recently, unexpectedly rose on September 17.
The increase in excise taxes is part of the strategy to bring Ukraine closer to EU standards, initiated after the signing of the Association Agreement. In 2023, similar changes had already led to discussions about the affordability of goods.
It is worth reminding that the draft law on increasing the excise tax on tobacco was adopted in January 2025.