The deputies of the Parliament suggest to increase the excise tax on cigarettes by 250 soms each year over the next three years. The proposal was made by the MP Dastan Bekeshev.
The MP noted that the excise duty on cigarettes in the country increased in January. As a result, the rise in price of a pack of cigarettes by an average of 5 KGS is expected. However, Kyrgyzstan still has the lowest rates for tobacco products in the countries of the Eurasian Economic Union (EEU).
MP proposes to re-raise the excise tax on July 1, and then annually on January for the next three years. However, the representatives of the tobacco industry have noted that they are against the second increase in the excise tax in a year.
MP agreed with the objections and proposed to increase the excise tax on cigarettes gradually: from January 2018 – to 1,250 soms; from January 1, 2019 – to 1,500 soms; and from January 1, 2020 – to 1,750 soms.
Deputies of the Economic and Fiscal Policy Committee supported the bill and sent it to Parliament for voting in the first reading. (24.kg/Business World Magazine)