Azerbaijan: increase in tobacco excise tax

As an effort to discourage tobacco consumption and reduce devastating health consequences, the Cabinet of Ministers of the Republic of Azerbaijan has approved new tobacco excise tax rates through the issue of Decision No. 5, the amendments to the Cabinet’s 2001 decision on excise tax. This decision will come into force on 10 February 2019.

According to the decision, excise rates on imported cigarette will be raised from 10 to 28 manats per 1000 sticks. Products such as cigars and cigarillos will see their excise tax increase from 10 manats per 1000 cigars to one manat per cigar and from 10 to 20 manats per 1000 cigarillos. Imported cigarettes, cigars, and cigarettes containing tobacco substitutes will also be subjected to increased excise duty. It is worth noting that for the first time, excise tax will be introduced on imported e-cigarette fluids for 20 manats per liter.

The decision to increase excise tax for imported tobacco products is in line with the requirements of WHO FCTC Article 6 and is expected to reduce the demand for tobacco products by raising the retail prices. The decision marks the next step in the country’s efforts in tobacco control and prevention after the adoption of the law “On restriction of tobacco use” in 2017 and the decision to increase excise tax on manufactured tobacco products in 2018.

Sources:

The decision can be found here (in Azerbaijani).