May 28 2015

Azerbaijan Considers Cigarette Price Increases

Published by at 11:30 am under Tobacco news

Since the start of 2015, cigarette prices have not still raised in Azerbaijan, claimed Rufat Guliyev, representative of the European Tobacco Baku (ETB) Company.

The Azerbaijani Parliament authorized amendments to the Tax Code, linking to the raise of the share of tax for smoking products at the end of December 2014.

In agreement with the amendments to Tax Code, the share of tax for 1,000 cigarettes, as well as cheroots and little cigars, known as cigarillos is fixed in the amount of 10 manats ($12.75). For cigarettes and its alternatives, the amount is four manats for 1,000 pieces.

Guliyev underlined that in Azerbaijan, prices on cigarettes are still the cheapest in the former Soviet Union and all over the world.

“Smoking products’ pricing will currently be completed in agreement with the new procedure. In order to comprehend how this procedure works, we must first learn it. This problem will be solved in not too distant future,” he added.
Guliyev also stated that a rise in excise tax rates would have an influence on the cost of cigarettes.
“Even so, these days it is too earlier to claim how new tax costs will effect tobacco prices. Various aspects influence the market price of cigarettes, and we will need a little time to come up with any adequate decision on how prices must modify. Up to now, no modification is witnessed in cigarette prices in Azerbaijan,” he explained.

Previously, the share of excise tax on smoking products constituted 12.5 %, while in Russia it extends to 40 % and in Great Britain, up to 70 %.

The vast majority of the smoking population in Azerbaijan are men. Around 50 % of men in the country smoke on a daily basis, 40 % of them smoke at least one or two packages of 20 cigarettes each day.

Musa Guliyev, a representative of the Parliamentary Committee has proposed to charge people who light up at home close to children and in the doorways of houses.
Guliyev highlighted the need of implementing a law restricting smoking in public areas within the law “On tobacco and smoking products”, which was implemented in Azerbaijan in 2001.

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