In Kazakhstan cigarettes will grow in price by 30% in 2015
Ministry of finance of Republic of Kazakhstan suggests determining from January 1st 2015 minimum retail price on pack of filtered cigarettes in amount of 200 tenge.
In explanatory note to the draft Decree of the Government "About introducing changes to the Decree of the Government of Republic of Kazakhstan from April 4th 2007 Nr. 260" "About determination of minimum retail prices on filtered cigarettes" is mentioned that it has to do with excise tax increase on them in 2015 - from 3000 tenge to 3900 tenge for one thousand cigarettes.
"In such a way considering increase stated above and also additional charge on the amount of excise tax increase and trade margins determined for wholesale and retail part, increase of retail price on filtered cigarettes (20 cigarettes) will make from January 1st 2015 - 200 tenge" - is said in the document.
Introduction of this measure, according to the opinion of developers, should shorten volumes of tobacco consumption, compensate growth of excise tax and inflation for previous period and also will increase government revenues from entire tobacco industry in the part of corporate income tax and value-added tax (VAT).
Let's remind that about growth of excise tax on tobacco products Ministry of Economy and Budget Planning of Republic of Kazakhstan was declared in September 2013. Excise tax rates on filtered cigarettes have made in 2013 1550 tenge, in 2014 - 3000 tenge, in 2015 - 3900 tenge, in 2016 - up to 5000 tenge, i.e. annual increase by 30%.
Minimum retail prices on filtered cigarettes were determined till December 31st 2013 in amount of 130 tenge, from January 1st 2014 have made 150 tenge.