Baku: The reason for the ban on electronic cigarettes has been explained, APA reports. During the discussion of the draft law on amendments to the Tax Code and the laws of the Republic of Azerbaijan ‘On Tobacco and Tobacco Products,’ ‘On Advertising,’ and ‘On Restricting the Use of Tobacco Products,’ at today’s session of the Milli Majlis, the Chairman of the Parliamentary Committee on Economic Policy, Industries and Enterprising, Azer Amiraslanov, stated that the Government of Azerbaijan, taking into account the recommendations of the World Health Organization, is implementing a policy of gradually increasing excise taxes on tobacco and tobacco products. According to the recommendation, at least 75 percent of the retail prices of all cigarette segments should consist of taxes.
According to Azeri-Press News Agency, Azer Amiraslanov said that in Azerbaijan, this figure is currently approaching 60 percent. He noted that the current draft does not envisage an increase in excise taxes on electronic cigarettes, but a more radical approach, namely their complete ban. Although the introduction of such a ban will lead to the loss of customs duties and tax revenues for these products, one of the priority directions of state policy is to protect the safety and health of citizens. The state never pursues fiscal interests in such matters but rather takes citizen-oriented principles and values as its basis. With the banning of electronic cigarettes, the state will incur budget losses in terms of import duties, excise taxes, and value-added tax applied to these products. Nevertheless, the outflow of foreign currency abroad due to the import of electronic cigarettes will also be prevented to a certain extent, as demand has been met by imports rather than local production.
Azer Amiraslanov further explained that taking into account the appeals of entrepreneurs and the experience of countries with strict ban regimes on electronic cigarettes, it is proposed that the law’s entry into force be extended and set for April 1 instead of February 1. During this period, it is considered necessary for relevant authorities to provide entrepreneurs with all possible support to avoid material losses and difficulties.
The chairman of the parliamentary committee emphasized that after the ban on electronic cigarettes takes effect, customs and tax authorities, antimonopoly bodies, and law enforcement agencies must implement serious preventive measures to avoid the emergence of a ‘black market’ and attempts at smuggling in this segment of business.