Belarus’ government is considering a bill amending the Tax Code, which suggests that the rates of the excise tax on cigarettes should be raised on January 1, 2017 by 4.1-4.6% for the H1 2017 period (from the H2 2016 level) and on July 1, 2017 by 5.2-5.7% (from the H1 2017 level) for H2 2017.
Cigarette excises are introduced once and for the whole of the year, with different values effective for the first and the second half of the year. Belarus’ government has adjusted the price ranges for some price groups, which are set for the period of January 1 through June 30, 2017 and July 1 through December 31, 2017.
The document says that the price range of Price Group 1 should include cigarettes priced under Br62.5 ($31.6) per 1,000 units in H1 2017 and under Br63.5 ($32.11) in H2 2017. In H2 2016 Price Group 1 referred to cigarettes priced under Br61.5 ($31.1) per 1,000 units.
The rate of the excise tax on Price Group 1 cigarettes is expected to grow by 4.6% from the current level to Br16 ($8.09) in H1 2017 and by another 5.2% in H2 2017 to Br16.83 ($8.51).
The document suggests that the price range of Price Group 2 should include cigarettes priced from Br62.5 to Br91.5 ($31.6 – $46.26) in H1 and Br63.5 to Br94.5 per 1,000 units in H2 ($32.11-47.78). In H2 2016 Price Group 2 referred to cigarettes priced from Br61.5 ($31.1) to Br89 ($45) per 1,000 units.
The rates of the excise tax on Price Group 2 cigarettes are expected to grow by 4.4% in H1 to Br39 ($19.72), up by another 5.4% in H2 to Br41.1 ($20.78).
The document suggests that the price range of Price Group 3 should include cigarettes priced higher than Br91.5 ($46.26) in H1 and higher than Br94.5 ($47.78) per 1,000 units in H2 2017. In H2 2016 Price Group 3 referred to cigarettes priced higher than Br89 ($45) per 1,000 units.
The rates of the excise tax on Price Group 3 cigarettes are expected to grow by 4.1% in H1 to Br44 ($22.25), up by another 5.7% in H2 to Br46.49 ($23.51) per 1,000 units.
The excise tax on smoking tobacco and pipe tobacco (per kilogram) may grow by 4.9% to Br66.6 ($33.67) in H1 and by 4.8% in H2 to Br69.8 ($35.29).
The excise tax on cigars (per unit) may grow by 4% to Br3.85 ($1.95) in H1 and 5.7% in H2 to Br4.7 ($2.06), cigarillos (per 1,000 units) – up 4.9% in H1 to Br55.2 ($27.91) and up by 4.8% to Br60.7 ($30.69) in H2. (Prime-TASS/Business World Magazine)