Prices of cigarettes increase in Azerbaijan - REASON

Prices of cigarettes increase in Azerbaijan - REASON
  • Clock-gray 14:00
  • calendar-gray 01 July 2020

Starting today AZN 0.10 increase in tobacco products in Azerbaijan has occurred as a result of two important factors, the international tobacco manufacturer company operating in Azerbaijan told APA-Economics.

According to the source, the first reason is an increase of excise tax: “As you know, excise rate for domestic production was increased by from AZN 20 to 31 for every 1000 cigarettes, for imported cigarettes from AZN 28 to AZN 39 for every 1000 cigarettes. It means when it was AZn 20, the excise tax per box made up AZN 0.40. In addition after AZN 11 increase, the price of excise per box increased an additional AZN 0,22 and reached AZN 0.62. Manufacturers have raised the price AZN 0,10, however, excise price per box was increased by AZN 0,22. In fact, companies have taken over AZN 0.12.”

Another reason for price increases is regarded as a mechanism to combat smuggling in the market.

Huseyn Veliyev

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