Baku, Azerbaijan, Jan.6
By Maksim Tsurkov - Trend:
The price for cigarettes and tobacco products in Azerbaijan remained at the same level in the first days of early 2015, the chairman of the board of European Tobacco Baku (ETB) Rufat Guliyev told Trend Jan.6.
He made the remarks commenting on the adoption of amendments to the Tax Code by the Milli Majlis (Parliament) of Azerbaijan, relating to the increase of excise tax rates on domestically produced tobacco products.
He said that the prices for cigarettes in Azerbaijan are the lowest ones in the former Soviet Union space and one of the lowest prices in the world.
"Formation of prices for tobacco products will now be carried out in accordance with the new mechanism," he said. "In order to understand how this mechanism will work, it is necessary to study it, and this issue will become clear in the near future."
Guliyev said that an increase of excise tax rates will have an impact on the cost of cigarettes.
"However, now it is very difficult to say how exactly the increase of excise tax rates will affect the cost of cigarettes," said the head of the board. "The market price of cigarettes is made up of a number of factors, and a little time is needed to make any concrete conclusion about the way the prices change. At present, changes in cigarette prices in Azerbaijan are not observed."
Since 2015, the share of excise tax in the value of 1,000 cigars, cheroots and cigarillos (thin cigarettes) is set at 10 AZN, and the share of excise duty will amount to 4 AZN for 1,000 items for cigarettes and their substitutes, according to the draft amendments and additions to the Tax Code, adopted by the Parliament of Azerbaijan.
Previously, the share of excise tax in the cost of all types of tobacco products was 12.5 percent.
Edited by CN
Follow the author on Twitter: @MaksimTsurkov
