Experts: New rules boost cigarette smuggling in Azerbaijan

From: Report News Agency

Baku/ The legislation requiring non-cash sale of tobacco products has been in effect for half a month now. According to the new rules, tobacco products shall only be traded non-cash except at retail. Any POS shall have either a bank account or a card account tied to TIN in order to be able to buy cigarettes. Although the main aim of this decision is to ensure transparency, its harm on the market of cigarettes, which are a strategic product, is already apparent because no education or preparatory work has ever been done over the enforcement of this decision, no transition period has been granted for adaption to the new rules and overall, businesses are unready for such a decision.

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The situation becomes worse when you go out of Baku. Contraband cigarettes replace legal ones on the shelves there. Such cigarettes are smuggled, have unknown origin and no taxes or duties are paid for them. Traditionally, they don’t fight against such contrabands. As a result, both the government and the business lose, while criminal groups which deal with smuggling cigarettes gain.

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