Azerbaijan will subject imported tobacco products to new excise tax rates, effective Jan. 22, reports AzerNews.
The cabinet of ministers has set the excise for imported cigars at AZN20 ($11.77) per 1,000 pieces and that for imported cigarettes at AZN12 per 1,000 pieces.
The decision follows a sharp reduction in the exchange rate of Azerbaijani manat against the U.S. dollar, which led to an increase in prices for imported alcohol and tobacco products, as well as to a reduction in excise tax collections in manat.
In January-August 2017, Azerbaijan imported tobacco and tobacco products worth $101.9 billion.
Of the 10 billion-plus cigarettes consumed, only 1.6 billion are produced in Azerbaijan
A pack of cigarettes sells for an average of $1.2 in Azerbaijan, compared with $3.5 in Russia.