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Introduction of e-cigarettes excise tax in Kyrgyzstan not to violate EEU norms

Possible introduction of an excise tax on hookah and electronic cigarettes in Kyrgyzstan will not violate the provisions of the Eurasian Economic Union Treaty. The Minister of Economy of Kyrgyzstan Oleg Pankratov told 24.kg news agency.

According to him, the introduction of the excise tax refers to the national tax legislation, which is not within the competence of the Eurasian Economic Union (EEU). In addition, similar standards already exist in the countries of the Union, for example, on electronic cigarettes and heating mixtures.

«There are no contradictions here. We can introduce excise tax at the national level. It will be paid by suppliers from EEU countries. The only thing is that these standards are the same for both domestic producers and importers from the EEU or WTO countries. If the excise tax was introduced selectively, it would be considered a barrier. If it acts the same for everyone, there will be no problems,» Oleg Pankratov stressed.

Parliament deputy Ekmat Baibakpaev proposed to introduce excise taxes on the hookah. It is prescribed in the Tax Code to introduce new categories of excisable goods, and from 2020 — to set the excise tax on nicotine-containing liquids and products with heated tobacco similar to the rates on other tobacco products.