Ministry of Digital Transformation: What eExcise reform implies — everything about the reform to combat the shadow market for tobacco and alcohol

Last year, the budget lost over UAH 30 billion due to the illegal circulation of alcohol and tobacco. To shut down these schemes and prevent the sale of counterfeit goods, the state has launched a large-scale reform and plans to launch the eExcise system in 2026. Deputy Minister of Digital Transformation Zoriana Stetsiuk explains how it works.

What eExcise implies

eExcise is a comprehensive reform that completely changes the rules for the circulation of alcohol and tobacco in Ukraine. The reform is expected to contribute to more effective combating of the shadow market and increase budget revenues.

The main tool of this reform is the eExcise electronic system of the same name. It will allow to control the entire supply chain: from production or import to sale to the end consumer. By replacing paper stamps with electronic ones, we will make this process transparent in order to effectively combat the shadow market and fill the budget.

A similar system, Tobacco Track&Trace, has been operating in the EU since 2019. In its first year alone, it detected 600 million illegal cigarettes and generated EUR 4 billion in economic benefits. Based on this, we have developed the Ukrainian eExcise system, which is three times more functional.

How eExcise will work

The logic of the system is simple and transparent. The manufacturer or importer applies an electronic excise stamp with a unique DataMatrix code to each bottle or pack. Unlike paper, it cannot be forged.

The system then automatically tracks every step of the product's movement: from production to store shelves and consumers.

This will make the market more transparent for the state, as every transaction leaves a digital trace, making fraud impossible.

How eExcise will change the lives of Ukrainians

For people, it means, first and foremost, safety and confidence in what they are buying. Thanks to integration with the Diia, every Ukrainian will have a control tool on their smartphone. You simply scan the code through the app and check whether it is a legal excise stamp or a fake.

If the system cannot find the information or the data does not match, you can report it with a single click. In fact, we are giving people the opportunity to protect themselves from counterfeits.

How eExcise will change things for businesses

Honest businesses will get what matters most: a level playing field. We are eliminating unfair competition from “shadow” businesses that have been dumping prices for years by not paying taxes.

Now, legal manufacturers will be protected from counterfeiting of their brands. In addition, the transition to digital significantly simplifies life for entrepreneurs: less paperwork, simplified reporting, and automation of the stamp ordering process.

What changes eExcise will bring to the state

Efficiency and transparency. The system will allow billions of hryvnias that previously bypassed the treasury to be returned to the budget. The state at last will have a complete picture of the market in real time, without distortions or human interference.

It is also a strong signal to our international partners: Ukraine is demonstrating a real fight against corruption and harmonizing its legislation with EU standards not in words, but at the level of working technologies.

When a full launch is expected

We are moving gradually to give businesses time to adapt. We are currently testing the system together with businesses. In August 2026, we will launch a test environment with test data, and in October, we will open user registration.

We plan to launch the final, full-fledged version of the system on November 1, 2026.