Baku, Azerbaijan, Dec. 11
By Azad Hasanli – Trend:
The Taxes Ministry of Azerbaijan plans to significantly raise excise tax rates for domestically produced tobacco and alcohol products, a source in the government told Trend on Dec.11.
Starting 2018, it is expected to increase the excise tax rates on imports of tobacco products almost three times and alcohol products - on average by two times. However, these changes will also affect domestic producers of these products.
Currently, the excise tax rates on the production of cigarettes is four manats per 1,000 pieces, and cigars and cigarillos - 10 manats per 1,000 pieces. According to the source, amendments to the Tax Code provide for an increase in the excise tax rates from four to 12 manats for cigarettes. As for cigars and cigarillas, the source did not specify how much the excise tax rate on these tobacco products will be increased. However, it is expected that the increase will be at least twice.
The excise tax rates on the alcoholic beverages produced in the country are planned to be raised on average by two times, the source said.
As for alcoholic beverages, the excise tax rates depend on the type of the beverage. Today, the excise tax rates for spirits (including beverages where the content of ethyl alcohol is less than 80 percent), vodka, liquor and others is two manats per liter, for cognac and cognac products - six manats per liter, for champagne - 2.5 manats per liter, wine and wine products - 0.1 manats per liter, beer (except for non-alcoholic beer) - 0.2 manats per liter.
The increase in the excise tax rates on tobacco and alcoholic products will allow to a certain extent to increase the revenues of the state budget.
So, next year, according to the government, revenues from the excise tax on tobacco products are expected at the level of 90 million manats (a 2.3-time growth compared to the current year), on ethyl alcohol - 10.2 million manats (a 9-time growth), on alcoholic beverages - 20.46 million manats (a 2.2-time growth) and on beer - 12.72 million manats (an increase by 3.2 times).
(1.7 AZN = 1 USD on December 11)