Ukraine launches eExcise: how the system for combating the illegal market will work

Testing the eExcise system in Ukraine

According to Федоров: From January 1, 2024, testing of the eExcise system will begin in Ukraine, aimed at combating the illegal market for tobacco and alcoholic products. The testing will last until October 12, 2024. This system will allow businesses to adapt to digital changes and improve control over the legality of products in the market.

Key features and implementation

The eExcise system will be implemented without human involvement, which is expected to reduce corruption risks. One of the key features of the new system is that every Ukrainian will be able to check the legality of products through the Diia platform. This will contribute to greater transparency in the sale of tobacco and alcoholic products.

The eExcise project is being implemented thanks to joint efforts:

• Ministry of Digital Transformation
• Ministry of Finance
• State Tax Service

The implementation of this system is part of the 'Digitalization for Growth, Integrity, and Transparency' program (UK DIGIT), which aims to modernize public services and combat illegal markets.

With the eExcise system, Ukraine hopes to increase the level of product legalization and reduce smuggling volumes, which in turn will positively impact the country's budget.

The implementation of the eExcise system is an important step towards the digitization of public services in Ukraine. In particular, it can significantly reduce the shadow market, which is a problem for the country's economy. Currently, in the context of growing competition and the fight against smuggling, effective control over the legality of products is critically important to ensure fair competition and protect consumer interests.