Key points:
Significant growth in tax revenue: Japan Tobacco International's Ukrainian company reached 21.2 billion hryvnias (approximately 5 billion US dollars) in tax revenue in the first half of 2025, a 75% increase compared to the previous year.
All tax categories saw varying degrees of growth, with a particularly notable increase in consumption tax, which reached 81%.
The main factors contributing to this growth are legislative changes, improved business performance, and exchange rate fluctuations.
Company plans include an additional investment of $60 million in the heated tobacco products sector between 2024 and 2026.
In comparison, another tobacco market giant, Philip Morris International's Ukrainian company, saw a 17% increase in tax revenue in the first half of 2025, while overall consumption tax revenue in Ukraine grew by 45.7%.
According to open4business, on August 5th, Japan Tobacco International Ukraine is one of the largest companies in the Ukrainian market. In the first half of 2025, the company transferred 21.2 billion Ukrainian hryvnias (approximately 500 million US dollars) in taxes to the national budget, which is a 75% increase compared to the same period in 2024.
The company stated in a press release issued on August 4th, "The main factors behind the growth are legislative changes, including an increase in consumption tax rate, as well as improvements in business performance and changes in exchange rates.
According to reports, the largest portion of tax revenue comes from consumption taxes- amounting to 1.64 billion GNF (approximately 400 million USD), which is 81% higher than the figures from the first half of 2024.
Noteworthy is the fact that value-added tax payments have increased by 73% to reach 2.76 billion Ukrainian hryvnias (approximately 100 million US dollars), due to stable demand, adapting to regulatory changes, and balanced cash flow management.
A news release quotes Olga Sulitska, Chief Financial Officer of Japan Tobacco International Ukraine, as stating, "Other projects have also seen significant growth: income tax (+45%), customs payments (+37%), social security contributions (+24%), personal income tax, and military tax (+36%).
The company also stated that they plan to strengthen risk management in the second half of the year while maintaining stability in tax and social obligations.
Japan Tobacco International Ukraine, a subsidiary of Japan Tobacco International based in Geneva, Switzerland, is the international tobacco business under Japan Tobacco Group headquartered in Tokyo. The company has been operating in Ukraine since 1999 and is currently represented by two companies, with over 800 employees.
The products of Japan Tobacco International Ukraine are not only supplied to the domestic market of Ukraine, but also exported to nine countries worldwide. The company has announced that it has invested over $4.337 billion during its 26 years of operation and plans to invest an additional $60 million in the field of heated tobacco products between 2024 and 2026.
According to the YouControl system, in the first half of 2025, Japan Tobacco International Ukraine company saw a revenue growth of 37.7%, reaching 18.6 billion Ukrainian Hryvnia (approximately 4.48 billion US dollars), and a net profit growth of 15.7%, reaching 1.11 billion Ukrainian Hryvnia (approximately 0.27 billion US dollars).
According to data from YouControl, the revenue of Japan Tobacco International's Ukraine company increased by 61.8% in the first six months of 2025, reaching 47.4 billion Ukrainian hryvnia (approximately 1.1 billion USD), with net profit doubling to 12.3 billion Ukrainian hryvnia (approximately 0.3 billion USD).
According to reports, another major player in the tobacco market, Philip Morris International (PMI) Ukraine, has reported that tax revenues for January to June 2025 increased by 17%, reaching 289 billion Ukrainian hryvnia (approximately 7 billion US dollars).
According to the Ministry of Finance, consumption tax revenue in the first half of 2025 increased by 45.7% to reach 132.7 billion Ukrainian Hryvnia (approximately 3.2 billion US dollars).
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