Turkmenistan Increases Consumption Tax on Tobacco Products in Effort to Become Tobacco-Free
Turkmenistan has recently raised the consumption tax on cigarettes and other tobacco products in a bid to discourage smoking and promote a tobacco-free nation. The tax has been increased from 116% to 145% of the customs value for cigarettes, while the tax on tobacco and tobacco substitutes manufactured by other industries has been adjusted from 24.4 to 30.5.
The move comes as part of Turkmenistan’s national plan to transform the country into a tobacco-free nation between 2022 and 2025. In November last year, legislation was enacted to prohibit the sale of cigarettes to individuals under the age of 21.
Recognizing the need for stricter measures, President Serdar Berdymukhamedov proposed during a National Security Council meeting in June the implementation of stronger measures to combat the illegal import, sale, and use of illicit tobacco products, tobacco accessories, hookah mixtures, and e-cigarettes.
Expected to be enforced from January 1, 2024, the new tax law is predicted to have a significant impact on various industries, especially those involved in the illicit trade of tobacco products.
