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Excise duty on cigarettes in EEU countries may amount to € 35 for 1,000 pieces

The rate of excise duty on tobacco products in the countries of the Eurasian Economic Union is being agreed at the level of € 35 for 1,000 pieces, Izvestia reported, referring to the letter of the Deputy Minister of Finance of the Russian Federation Ilya Trunin to the Federation Council Committee on the Budget and Financial Markets.

It is noted that a range of deviations of actual excise rates from indicative ones has been developed. For each of the five countries of the union, it will be own. More favorable conditions are established for Armenia, Kyrgyzstan and Belarus.

The Eurasian Economic Commission (EEC) decided to establish by 2022 a uniform mechanism for calculating the excise tax on cigarettes for the EEU countries.

The average value was chosen in euros, since the excise rates of the EEU countries are set in the national currency. The draft agreement on the principles of tax policy in the field of excise tax rates for tobacco products was prepared by the EEC Financial Policy Department.

The range of deviations of actual rates from indicative ones is also developed:

— for Belarus, Kazakhstan and Russia, it should be not more than 15 percent downward and no more than 20 percent upward;

— for Armenia, Kyrgyzstan and for the first price group of cigarettes (cheap assortment), for Belarus — no more than 30 percent -and not more than 20 percent upward.

There are different rates of excise duty on tobacco in the EEU countries. Cigarettes in Russia are more expensive than in the countries of the EEU, by 61.9 percent in the economical and 55.2 percent in the mid-price segment. This creates preconditions for illegal trade in tobacco products, the newspaper notes.

Deputies of the Kyrgyz Parliament offer to increase the excise tax on cigarettes by 250 soms per year in the next three years. Such an offer was made by the parliament member Dastan Bekeshev.