Prices for alcohol drinks and tobacco products have risen in Tajikistan. Some local experts predict increase in volume of counterfeit products in the country.
Recall, Tajik government’s decree sees higher prices of certain goods, including alcohol drinks and cigarettes. Issued on June 9, the government’s decree approves new excise tax rates for some goods manufactured inside the country and imported from abroad.
The decree notes that excise tax rates for these goods that had been in effect in the country since February 15, 2014 have become invalid.
Excise tax rates for practically all excisable goods have been raised with the exception of petroleum products, caoutchouc, rubber and rubber products, pearls, precious and semiprecious stones, coins, costume jewelry, etc.
Thus, the excise tax rate for beer has risen from €0.10 to €0.35 per liter, for wine – from €0.25 to €0.85 per liter, for ethyl alcohol – form €2.50 to €4.10 per liter.
The excise tax rate for cigars has been raised from €0.80 to €8.50 per 1,000 pieces and for cigarettes – from €1.00 to €9.80 per 1,000 pieces.
The excise tax rate for water, including natural or artificial mineral water, sparkling water, without added sugar or other sweeteners or flavorings, has risen from €0.02 to €0.06 per liter.
The excise tax rate for water containing sugar or other flavorings has been raised from €0.03 to €0.09 per liter.
In accordance with the decree, the new excise tax rates came in effect on July 1, 2018.
Prices for alcohol drinks and cigarettes have risen
Vendors say prices for alcohol drinks have risen on average by between 2.00 and 5.00 somoni depending on the type of the alcohol drink.
Vendor at one of wholesale shops, who introduced himself as Jaffar, says the price for one liter of potable spirit (Ghafourov) has increased by 2.00 somoni – from 12.00 to 15.00 somoni. Prices for vodka and brandy have increased on average by between 1.50 and 3.00 somoni and prices for wine have increased between 2.00 and 5.00 somoni, Jaffar said. All the given prices are the wholesale ones.
Prices for cigarettes have also increased. It is to be noted that practically all the tobacco products are being delivered to Tajikistan from abroad and only Senator cigarettes are produced in Khujand, the capital of the northern Sughd province.
The price for one carton of Senator cigarettes (200 pieces) has increased from 29.00 to 37.00 somoni.
Current prices of one carton are 70.00 somoni for Winston (it previously cost 60.00 somoni), 55.00 somoni for LD cigarettes (it previously cost 45.00 somoni), 80.00 somoni for Camel (it previously cost 70.00 somoni), 78.00 somoni for Kent cigarettes (it previously cost 68.00 somoni), 70.00 somoni for Winston (it previously cost 60.00 somoni), etc. All the given prices are the wholesale ones, while the retail prices are on average 20 percent higher.
Opinions
Opinions of experts on raising excise taxes alcohol drinks and cigarettes have been divided.
Some of them believe that it is necessary to gradually increase the excise taxes on alcohol drinks. Moreover, it will be smooth for consumers, according to them.
Other experts consider that increase in the excise taxes on alcohol drinks and cigarettes will not produce the expected effect. According to them, volumes of counterfeit products can increase because all measures to combat illegal products will prove ineffective.
According to them, real incomes of the most part of the population are very low and there ought not to expect that the budget receipts will increase with increase in the excise taxes on alcohol drinks and tobacco products.
Meanwhile
Representatives of government bodies and the private sector discussed the possibility of gradual increase on tobacco products last year.
The Government of Tajikistan last year offered stage-by-stage increase in an excise tax on tobacco products. The government worked out a draft regulation on raising the excise tax on the tobacco products and it was discussed at a meeting with representatives of business community on October 11, 2017.
Representatives of government bodies, in particular, noted that Tajikistan has the lowest excise tax on tobacco products in Central Asia – €1.00 on 1,000 pieces.
In Kyrgyzstan, for example, the excise tax on tobacco products is 7.00 euros on 1,000 pieces.
In this regard, the government decided to equate the excise tax rate for tobacco products with rates set by neighboring countries.
The government offered stage-by-stage increase in the excise tax on cigars, cigars need to be cut on both ends, cigarillos and cigarettes of tobacco or tobacco substitute to €2.40 on 1,000 pieces in 2018, to €4.00 in 2019 and €5.60 in 2020.
The excise tax on tobacco containing cigarettes (with filter and without filter) was expected to be raised to €3.00 on 1,000 pieces in 2018, €5.00 in 2019, and €7.00 in 2020.
