From: Tengri News
Increase of the Kazakhstan excise tax on cigarettes has triggered an
increase in illegal traffic from Kyrgyzstan in 2013, according to the
report provided by one of Kazakhstan-based tobacco companies to Tengrinews.
The excise tax on cigarettes was almost doubled – increased by 94% – on
January 1, 2014, which increased the cost of one cigarette pack by 30
tenge. The increase was pretty tangible for the citizens smoking cheap
and mid-range cigarets, according to the company. Besides, it is
expected that the gradual increase of the excise duty will continue and
reach 45 Euro per thousand items by 2020. According to the tobacco
company, the excise duty currently make from 23% to 40% of the cost of
the cigarettes, depending on their price segment.
“After the previous increase – a 25% raise of the excise tax in January
2013 – the illegal trafficking of cigarettes from the neighbouring
countries to Kazakhstan increased by an averagely of 21%,” the tobacco
company said adding that Kyrgyzstan was the traditional source of
illegal traffic of tobacco for Kazakhstan.
