Baku, Azerbaijan, April 27
By Fikret Dolukhanov – Trend:
Each sovereign state conducts its own customs and tax policy, and, naturally, many countries decide to increase excise taxes to effectively raise budget income, member of Azerbaijani Parliament Rufat Guliyev told Trend, commenting on the news that Uzbekistan will increase the excise tax on cigarettes and alcohol in order to replenish local budgets.
According to Guliyev, raising taxes on cigarettes and alcohol can also help to decrease use of these products.
“In Turkey, for example, taxes on cigarettes are several times bigger than the cost of the cigarettes themselves. In the UK, a pack of cigarettes, which costs 1.5 to 2 pounds, is sold for 7 to 10 pounds. And all of this is a source of income for the budget,” member of the parliament said.
Guliyev mentioned production of low-quality substitutes, especially for alcohol products, among the risks involved.
“In this case, however, the decision will primarily lead to additional replenishment of the budget. Moreover, when duties and excises on imported products increase, that leads to the interest to development of local production,” concluded Guliyev.
It was reported on April 26 that Uzbekistan will increase the excise tax on cigarettes by 50 percent and taxes on alcohol by 20 percent.
Earlier, commenting on the news that starting from June 1, producers of beer, vodka and tobacco products in Uzbekistan will allocate finances to the country’s fund for the development of physical culture and sports, Guliyev noted that there are more effective methods of financing sports, carried out through the means already available: the excise tax and the VAT, which, if necessary, can be increased or decreased.
The same opinion was shared by the director of the Center for Economic Development in Uzbekistan Yuliy Yusupov.
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