The electronic cigarette market in Ukraine: the majority of products are sold illegally
According to the latest data from the research company Kantar, the Ukrainian electronic cigarette market has serious problems with legal compliance. Analysts have estimated that only 4% of all products sold in Ukraine are sold legally. This means that the vast majority of goods reach consumers while bypassing tax and customs regulations.
Experts cite the large volume of smuggling and illegal production as the main reason for this situation. A significant portion of electronic smoking devices is brought into the country without the payment of excise taxes. This allows unscrupulous sellers to set lower prices than official distributors, making illegal products more attractive to buyers.
This situation creates significant risks for both the state budget and the consumers themselves. Due to the lack of quality control over goods, buyers often receive devices that do not meet safety standards. Furthermore, the state treasury loses billions of hryvnias every year due to tax evasion, funds that could have been directed toward social needs or the country's defense.
Currently, representatives of the government and regulatory authorities are looking for ways to solve this problem. Discussions are underway regarding the strengthening of customs control and the introduction of new mechanisms for tracking the movement of excisable goods. Experts emphasize that to rectify the situation, comprehensive legislative changes are needed to help bring the market out of the "shadows" and ensure the safety of Ukrainian consumers.