Azerbaijan needs to further increase taxes on tobacco products - WB
Baku, Azerbaijan, June 12
By Anvar Mammadov - Trend:
Further increase of taxes on tobacco products is necessary in Azerbaijan, Head of the World Bank Office in Azerbaijan, Naveed Hassan Naqvi told reporters June 12.
The head of the WB office noted that, low taxes on tobacco products lead to two problems.
"In Azerbaijan today, there is still a very low tax on tobacco products. This leads to two problems. First, the government receives less profit from the tobacco industry than it could be. Secondly, low taxes on tobacco products cause cheapness of cigarettes and their availability, which leads to their excessive consumption and burden on the health care system," Nagvi said.
The head of the WB Baku office noted that Azerbaijan could use the experience of neighboring Turkey in this issue.
"During the year, we have sent our proposals to the government several times, and we are glad that the ministries of taxes and health have a full understanding of this issue. We believe that Azerbaijan could use Turkey's experience," Nagvi said.
In Turkey, the increase in prices for tobacco products by 195 percent caused not only an increase in the collection of taxes from their sale by 175 percent, but also a decrease in sales of cigarettes by 16 percent. Nagvi noted that, currently, the tax on cigarettes in Turkey is about 75 percent of the cost of cigarettes.
In Azerbaijan, the rate of excise duty on the import of tobacco products are as follows: cigars - 20 AZN per 1,000 pieces, cigarettes - 12 manats per 1,000 pieces.
Follow the author on Twitter: @Anvar_Mammadov