Fines Don't Deter: In Ukraine They Propose a Harsh Crackdown on Illegal Vapes

In Ukraine, proposals to raise fines for illegal sales of e-cigarette liquids up to 250 thousand UAH are part of an active effort to curb the shadow market.

According to a expert, underground goods in this category are mostly sold by individual entrepreneurs who do not have licenses for excisable products and, accordingly, do not pay excise tax, VAT, and other taxes. The average price of a “self-mixing” kit (the main scheme of illegal e-liquid distribution, where ingredients are sold separately for self-mixing) is 350 UAH. If such goods were taxed, their price would reach 430 UAH. According to Koshchuk, state restrictions on the sale of raw materials and a fine of 26 thousand UAH for retail outlets do not apply. She explained that with daily revenue of about 7 thousand hryvnias, such a punishment does not intimidate offenders. “If this fine were 250 thousand hryvnias, perhaps it would have some impact on the situation,” the expert noted, commenting on the government’s initiative to reduce the shadow economy. On the other hand, she emphasized that in addition to higher fines it is important to ensure that they are applied. Also see: Who actually uses vapes in Ukraine: study shows unexpected results. According to the State Tax Service, in 2026 year, out of about 4 thousand points of illegal sale of e-cigarette liquids, only 300 received fines. “The problem must be solved from multiple sides. The State Tax Service, the Bureau of Economic Security, which should combat illegal production of liquids, must get involved. The customs service and the border service must join in to block imports of this product. In other words, there should be a comprehensive program,” said Koshchuk.

Recall that in 21 October, at a meeting with government officials, lawmakers, the director of the BEB Oleksandr Tsyvinsky, the first deputy head of the State Tax Service Yuriy Konyushenko, and the leadership of the National Police and the Customs Service, the government identified key measures to reduce the shadow economy. Among the priorities are the fight against illegal production and circulation of tobacco, taxation of electronic cigarettes and liquids for them, cessation of smuggling, elimination of tax evasion schemes and gambling business machinations. Earlier a cardiologist explained what the commonality is between vapes and substances used for preserving corpses.