TWEN market is likely to continue to grow

[roselin@#9201]

The State Budget of Ukraine will receive a shortfall of 427.9 million euros for 2025-2028

We earn our money when we sell the business. Interview with the co-owner of the Dairy Alliance
Format competition. Will e-commerce and convenience stores displace large supermarkets?
Billion-dollar losses, transit restoration and port digitalization. Interview with the head of the USPA
Given that heated cigarettes already have preferential conditions on the market compared to cigarettes (flavors, lack of graphic medical warnings on the packaging, aggressive advertising of tobacco heating devices, novelty of the product), the during 2024-2028. The tax preference for TWEN will further stimulate the spread of the epidemic of use of these products, primarily among the special database young population. As a result, the budget of Ukraine will lose about 427.9 million euros or 18.6 billion UAH for 2025-2028 and 7 billion UAH for each subsequent year in the case of excise preference for TWEN (20%) compared to if the excise rate on TWEN remains at the level of cigarettes and cigarillos.

In addition to direct revenue shortfalls, healthcare expenditures will increase, as the increase in the prevalence of tobacco use will lead to increased morbidity, mortality, and disability among the population.

Every year, Ukraine loses about 3.2% of its GDP due to the costs of treating diseases caused by smoking, the loss of working capacity of Ukrainians, and the premature death of some of them. And, at worst, 130,000 Ukrainians die from diseases caused by tobacco - such losses are difficult to estimate, especially during the years of debilitating war and demographic crisis.