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Tag: Uzbekistan

  • Uzbekistan Imposes Harsh Criminal Penalties on E-Cigarette Trade

    Uzbekistan Imposes Harsh Criminal Penalties on E-Cigarette Trade

    Uzbekistan enacted strict amendments to its Criminal Code, introducing severe penalties for the import, export, production, and sale of e-cigarettes and other nicotine-containing devices, according to local media reports. The nationwide ban now criminalizes all forms of circulation, including purchase, storage, and transportation. Large-scale violations or repeat offenses after administrative penalties can result in fines, corrective labor, restrictions of freedom, or up to five years’ imprisonment.

    Authorities say individuals may avoid prosecution if they self-report and surrender prohibited products voluntarily.

  • BAT Acquires Full Ownership of UzBAT for $22M

    BAT Acquires Full Ownership of UzBAT for $22M

    BAT Group completed its deal with Uzbekistan’s State Assets Management Agency to buy the state-owned stake in the UzBAT joint venture for $22.3 million, finalizing it on October 6. BAT acquired 641,661 shares (2.6%) as part of its continued commitment to the country’s economic and social development.

    Operating in Uzbekistan since 1994, BAT has invested over $500 million in the local market over the past 30 years. UzBAT, the country’s leading tobacco manufacturer, produces traditional cigarettes and, since 2023, heated tobacco sticks at the Samarkand Multi-Category Factory as part of BAT’s global “A Better Tomorrow” strategy to expand smoke-free products and reduce harm.

    The joint venture not only serves domestic demand but also exports products to Kazakhstan, Georgia, Azerbaijan, Iraq, and South Korea. UzBAT is a major employer with over 800 staff and a top private taxpayer. For seven consecutive years, it has been recognized as a Top Employer by the international Top Employers Institute.

  • KT&G Announces New Uzbekistan Subsidiary

    KT&G Announces New Uzbekistan Subsidiary

    South Korea’s leading tobacco manufacturer, KT&G, has established a new subsidiary in Uzbekistan to strengthen its international market presence. This strategic move follows the opening of a local office in 2023, aimed at exporting customized tobacco products under the Esse brand to cater to regional preferences.

    In the previous year, KT&G achieved significant sales milestones, distributing 270 billion cigarettes across 120 countries. This expansion into Uzbekistan is part of the company’s broader strategy to tap into emerging markets and diversify its global portfolio.

    The establishment of the Uzbekistan subsidiary underscores KT&G’s commitment to adapting its product offerings to meet local tastes and regulatory environments. By focusing on customized products, the company aims to enhance its competitiveness and brand recognition in the Central Asian region.

  • Uzbekistan Plans to Ban Heated Tobacco, Vapes

    Uzbekistan Plans to Ban Heated Tobacco, Vapes

    Tashkent TV Tower Aerial Shot During Sunset in Uzbekistan (Credit: Lukas)

    The Ministry of Health in Uzbekistan has proposed a ban on the circulation of electronic nicotine delivery systems (ENDS) products, e-liquids and heated tobacco products, Trend reports.

    This is shown in the draft law published on Uzbekistan’s portal to discuss draft normative legal acts.

    According to the law, the circulation of ENDS products on the “territory of the country is prohibited.”

    The Ministry of Health also proposes to introduce administrative and criminal liability for violation of this ban—a fine in the amount of $1,000 to five years of imprisonment.

    According to data from Uzbekistan’s Statistics Agency, the production volume of tobacco products in the country reached 2.1 billion pieces from January through February 2024.

    From January through February 2024, the country’s exports of tobacco products reached $7.8 million, while imports amounted to $10.5 million during the same period.

  • New Tobacco Tax Rates in Uzbekistan

    New Tobacco Tax Rates in Uzbekistan

    Photo: Golib Tolibov

    Uzbekistan has indexed excise tax rates for tobacco products for 2024.

    Local tobacco products were indexed by 12 percent, and imports were reduced by 5 percent.

    According to UZ Daily, the new excise rates on cigarettes, cigarillos, bidis and kreteks produced in the country are UZS250,700 ($20.31) per 1,000 pieces plus 10 percent. Import excises on these products are UZS325,000 per 1,000 pieces plus 10 percent. Cigar excises are UZS6,400 per piece. Other tobacco products, such as hookah, smoking tobacco, chewing tobacco, snuff, etc., also have new rates.