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Kazakhstan may introduce excise tax on e-cigarettes, heating tobacco

Business Materials 21 May 2018 12:54 (UTC +04:00)

Baku, Azerbaijan, May 21

By Fikret Dolukhanov - Trend:

It is necessary to raise the issue of the introduction of an excise tax on heating tobacco and electronic cigarettes in Kazakhstan, the Chief Sanitary Doctor of Kazakhstan Zhandarbek Bekshin stated at a meeting with the Minister for Economy and Financial Policy of Eurasian Economic Commission (EEC) Timur Zhaksylykov in Astana, the Kazakh media reported.

"Smoking tobacco is subject to excise duty in country, but the reason of imposition of excise duty at zero rate on the electronic cigarettes in the form of pure nicotine is not clear at all. At a time when we are struggling with cardiovascular diseases, we see how the rate of use of smoking tobacco falls now. At the same time, the use of such harmful tobacco products as heating tobacco and electronic cigarettes is growing rapidly. The excise duty at zero rate is applied to such products. Therefore, we will raise the issue of the introduction of excise duty on these harmful tobacco products," Bekshin said.

The chief sanitary doctor noted that electronic cigarettes are not harmless, as many believe.

"I know for sure that the tobacco which is used by the method of heating and in electronic cigarettes is in a liquid state – it is an illusion of harmlessness, it contains pure nicotine. Russia has already understood this, and has applied an excise tax on it, but we have not yet applied such a tax," he said.

Bekshin proposed to introduce excise taxes on other types of tobacco products.

"As a result we spend budget funds on the treatment of patients. Everyone who undergoes bypass surgery – all of you probably know what bypass surgery means, become the disabled persons in the future. They undergo rehabilitation and then receive a disability status", - said the chief sanitary doctor of Kazakhstan.

The event was also attended by representatives of the State Revenue Committee.

"The imposition of non-zero rate excise duties on such tobacco products beginning from 2020 has already been envisaged, although electronic cigarettes do not actually contain tobacco. It contains a liquid, it is a chemical composition, and it will also be taxed," - said the Head of the Department for Administration of Excise Duties of the State Revenue Committee of the Ministry of Finance of Kazakhstan Damir Nurgaliyev.

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