The Government has adopted a decision to eliminate the scheme of tax evasion on the sale of tobacco and alcohol in Duty Free

Today, on 19 January, the Cabinet of Ministers adopted a decision* to eliminate tax evasion schemes for the sale of tobacco and alcohol in Duty Free stores.

The Government's decision provides for the introduction of effective control over compliance with restrictions on the sale of tobacco products and alcohol by Duty Free stores to one person within one day (approximately 2 packs of foreign cigarettes and 2 litres of alcohol).

The Ministry of Finance has developed the draft resolution to implement the amendments to Ukrainian legislation which entered into force on 1 October last year, which, in particular, prohibit the sale of domestically produced tobacco products and alcohol in Duty Free stores during the period of martial law, as well as restrictions on the sale of such goods of foreign origin.

These amendments to the Law were initiated by MPs to counteract the illegal circulation of excisable goods in the domestic market, a significant share of which were goods intended for sale in Duty Free stores or for export, thereby avoiding taxation.

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*Resolution of the Cabinet of Ministers of Ukraine dated 19 January 2024 "On Approval of the Procedure for the Exchange of Information between the State Border Guard Service, the State Tax Service, the State Customs Service and Business Entities that have permits to open and operate Duty Free stores regarding the details of passport documents of citizens who buy alcohol and tobacco products in Duty Free stores".