Recently in different online media appeared the untruthful info claiming that “Lviv Tobacco Factory” didn’t receive any excise stamps from Ukrainian authorities for marking cigarettes during 2018-19 years. In order to bring clarity to the situation, we feel the necessity to declare the following: all the publications mentioned above are a part of the provocation organized by the competitors. These articles have nothing in common with reality and aimed to harm the national tobacco manufacturer. In our opinion, the large transnational tobacco corporations as «Philip Morris», «Japan Tobacco International» and «British American Tobacco» can be among those who ordered this material.
Unfortunately, the Internet portals with a doubtful reputation where these materials were published don’t give us an opportunity to publish our disproof and highlight the companies who stand behind the lies against us. It does not give us an opportunity to highlight all the dirty PR-technologies which can be implemented by the competitors – large International corporations for destroying fair competitiveness on Ukrainian tobacco market.
It’s not the first time when our competitors act like this. In our opinion, their actions are systematic. Different informational attacks against our company take place at least twice every year. From our side, we kept on addressing news portals with official letters and did everything for disproving the untruthful information using official documents from courts and Ukrainian tax authorities.
Such media activity can be a part of the coordinated common strategy of few companies aimed to get over-profits after getting rid of the competitors on Ukrainian tobacco market.
At the same time, these huge International companies do their best to minimize taxation of their business activity and avoid paying their taxes by all means. One of the brightest examples of this activity is the recent demand from Ukrainian tax authorities addressed to Philip Morris Ukraine to pay 635 million hryvnias of taxes. This case was widely highlighted in Ukrainian media.
Regarding untruthful accusations against us – we have to appeal that the company named “Lviv Tobacco Factory” was closed 14 years ago. So, the company with this name physically couldn’t receive excise stamps from Ukrainian tax authorities during 2018-19 years.
But at the same time, our company is registered in Lviv region under the name of “Vynnykivska Tobacco Factory”. It’s a company with 100% Ukrainian investments. We’re also an official member of Ukrainian Tobacco Manufacturers Association. In 2017 we were on the 40th place among the biggest taxpayers in Ukraine and during 2017 we actually paid 1.2 billion hryvnias of taxes to the Ukrainian budget. In 2018 we were the 26th biggest taxpayer with 2.2 billion hryvnias paid accordingly. In 2019 we’re planning to be among the 20 biggest taxpayers in Ukraine. The sums mentioned above are confirmed during several audits by Ukrainian tax authorities in 2017-2018 yy.
Additionally, we have to explain that up to 1st of July 2018 the excise stamps were absolutely the same for different kinds of tobacco products. According to the points, 222.1.2 and 222.1 of Tax Code of Ukraine excise taxes should be paid by a tobacco manufacturer during 15 days after receiving excise stamps.
In such a way before July the 1st 2018, the authorities let tobacco manufacturers optimize their taxes and pay minimal fares in accordance with their excise stamps.
After excise stamps have been used and minimal fares have been paid, a tobacco manufacturer had to pay the difference in excising taxes after submitting the monthly declaration for excising taxes.
Taking into account the fact that excise tax is different for every product and depends on a complicated formula of calculating this kind of tax, the process contains blocking a large amount of money until the release of excise stamps. But the law lets another way of solving the situation: a tobacco manufacturer can order the cheapest excise stamps and after submitting the declaration pay the difference, according to the exact product that has been sold.
But starting from the 1st of July 2018 the government of Ukraine launched new examples of excise stamps for different kinds of tobacco products. Starting from July 1st “Vynnykivska Tobacco factory” buys all kinds of the excise stamps of a new type for marking different tobacco products and pays the whole amount of taxes at once.
That’s the reason why we keep on progressing in the list of the biggest taxpayers in Ukraine starting from 2017. According to the official list of the biggest taxpayers, only in 2017, our company paid more taxes than DTEK, Raiffeisen Bank Aval, and in 2018 – more than “Zaporizhstal Steel Plant”, “Azovstal Steel Plant” and other big companies.
The numbers mentioned above are the bright evidence that “Vynnykivska Tobacco Factory” provides thousands of jobs without any investments from outside of the country. Our company provides decent salaries paid in time and keeps on developing tobacco industry in Ukraine. At the same time, we see systematic efforts to discredit the National tobacco manufacturer for capturing and monopolizing the market in the country. Whoever actually launched this dirty campaign against us, it’s obvious that the companies as «Philip Morris», «Japan Tobacco International» and «British American Tobacco» will definitely benefit from it.