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, according to the company’s press release.

The majority of these contributions consisted of excise taxes amounting to UAH 25.6 billion and value-added tax (VAT) payments totaling UAH 8.6 billion.

The total tax contribution of Philip Morris in Ukraine in 2024 include payments 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, reaffirming 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 driven by the government’s active fight against illegal manufacturers, which reduced 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, with $11 million invested in its commercialization.

Additionally, the company’s new factory in Lviv region, launched with a $30 million investment, has significantly contributed to boosting state budget revenues and opened new opportunities for Philip Morris in Ukraine.

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.