Details added (first version posted on 12:24)
Baku, Azerbaijan, Nov. 7
By Azad Hasanli – Trend:
Azerbaijan will increase the excise tax rate on imports of tobacco and alcohol products by two times since 2018, said Azerbaijani Finance Minister Samir Sharifov.
He made the remarks at a meeting of five parliamentary committees for discussing the draft state and consolidated budgets for 2018.
The minister said that such a decision was made due to the fact that a sharp reduction in the exchange rate of Azerbaijani manat against the US dollar led to an increase in prices for imported alcohol and tobacco products, as well as to a reduction in excise tax rates in manat.
“This [increase of excise tax] will protect the domestic market and help ensure a healthy lifestyle for the population,” noted Sharifov.
He added that the amendments were taken into account when drawing up the state budget for 2018.
According to the draft state and consolidated budgets for 2018, revenues of the state treasury through the Ministry of Taxes are forecasted to total 7.907 billion manats (39.3 percent of all state budget revenues) next year. Tax revenue forecast for 2018 is 3.4 percent more than similar forecasts for 2017. Forecast on excise tax revenue for 2018 is expected to total 554 million manats (an increase of 6.9 percent as compared to the forecast for 2017).
At present, the excise tax rate on malt beer imported to Azerbaijan is 1 manat per liter; wines from fresh grapes, including fortified wines; grape must – 2 manats per liter; sparkling wines - 2.5 manats per liter; whiskey, vodka, liqueur, rum and other alcoholic beverages - 6 manats per liter.
The excise tax rate on imported cigarettes, cigarillos is 4 manats per 1,000 pieces; cigars - 10 manats per 1,000 pieces.