“In the past, the excise rate in our country was very low. There was a plan to increase it consistently”, Chief of the State Tax Service Orkhan Nazarli said during the discussion of the amendment suggested to the Tax Code at the meeting of the Parliamentary Committee for Economic Policy, Industry, and Entrepreneurship today, SİA reports.
The head of the service said that in the past, the level of the shadow economy in the cigarette market was quite high: “Today, the final figure is about 2-3%. All countries have this indicator. But in the previous period, a sudden increase in excise rate would not be the right step.
Entrepreneurs in this field understand that the process will be sustainable. Today, the average price of a pack of cigarettes is AZN 2,40. The increase in excise rates will also affect the average price of cigarettes. After that, the average price of a pack of cigarettes will be AZN 2,60. Revenues from this area are allocated to the public health sector. The issue is regulated in this way.”
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