Kazakhstan to raise excise taxes on alcohol and tobacco in 2017

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ASTANA (TCA) — In 2017, the government of Kazakhstan plans a phased increase in excise duties on alcoholic beverages and tobacco, the Minister of National Economy Kuandyk Bishimbayev said at the conference “Actual problems of taxation” on September 22, the official website of the Prime Minister of Kazakhstan reports.

The Ministry of National Economy of Kazakhstan together with the Ministry of Finance has drafted a bill on the improvement of tax and customs administration in Kazakhstan, which provides for a gradual increase in the excise duties on alcoholic beverages, beer, and tobacco.

“A phased increase in the excise duties was offered to implement the Presidential Decree of June 26, 2013 No 590 aimed at strengthening the fiscal functions of the excise duties on alcoholic beverages, tobacco and petroleum products in Kazakhstan,” Bishimbayev said.

According to the Minister, it is proposed to set the excise tax on alcoholic beverages at 2 thousand tenge per liter in 2017 (a 4-percent increase compared to the previous year), at 2,275 tenge in 2018 (14-percent increase), and at 2,550 tenge in 2019 (4-percent increase).

“It is proposed to establish a zero rate of excise duty on ethyl alcohol sold or used for the production of alcoholic beverages in order to avoid double taxation and enhance the competitiveness of domestic producers in the export of alcoholic beverages. The current rate is 60 tenge per liter. A similar tax exemption is used in the Russian Federation and Belarus,” the Minister said.

Sergey Kwan

TCA