Philip Morris increased tax contributions to Ukraine’s budget by 38% in 2024
In 2024, Philip Morris in Ukraine paid UAH 52.2 billion in taxes, which is over UAH 14 billion (or 38%) more than in 2023.
This was stated in the company’s press release.
The majority of these contributions consisted of excise tax payments amounting to UAH 25.6 billion and value-added tax (VAT) payments totaling UAH 8.6 billion.
The total amount of taxes paid by Philip Morris in Ukraine in 2024 includes contributions from PJSC "Philip Morris Ukraine" and LLC "Philip Morris Sales and Distribution."
"In 2024, Philip Morris in Ukraine significantly increased its tax contributions to the state budget, once again confirming its status as one of the country’s largest taxpayers and a reliable economic partner. The more than UAH 52 billion paid has made a vital contribution to maintaining economic stability in the country, especially during wartime," said Sergii Kalnoochenko, CFO of Philip Morris Ukraine.
According to him, the increase in tax payments was primarily made possible by the government’s active fight against illegal manufacturers, which led to a reduction in the shadow tobacco market from 25% to 12.6%, the gradual recovery of the company’s market share in Ukraine, as well as the successful launch of the latest IQOS ILUMA tobacco heating device, in which $11 million was invested for commercialization.
Additionally, a significant role in boosting state budget revenues was played by the new factory in Lviv region, with $30 million invested in its launch, opening new opportunities for the company in Ukraine.
According to the Chairman of the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy Danylo Hetmantsev, Philip Morris in Ukraine remains one of the leading companies in the tobacco industry, making a significant contribution to the country's economic stability and defense capability through tax payments.
He emphasized that the company not only ensures stable revenues for the state budget but also effectively cooperates with the committee in combating the illegal tobacco market.
As previously reported, in 2023, Philip Morris in Ukraine paid UAH 37.8 billion in taxes, including UAH 30.3 billion in taxes related to product sales (excise duties, VAT, etc.).
Philip Morris Ukraine has been operating in the Ukrainian market since 1994 and has invested over $750 million in the country’s economy. In 2024, the company opened a new factory in the Lviv region, investing $30 million and creating 250 jobs.
Since the beginning of the full-scale invasion, the company has allocated UAH 400 million for humanitarian projects.
