Excise tax rates on tobacco products will be gradually increased from 2023

The Law of the Republic of Kazakhstan dated July 11, 2022 No. 135-VII ZRK amended the Tax Code, which provides for a gradual increase in excise rates on tobacco products. The rates are approved for 2023, 2024 and 2025. This was reported in the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan.

Namely, changes have been made to lines 14, 15, 16, 18, 21 and 22 of the table of subparagraph 1) of paragraph 4 of Article 463 of the Tax Code.

Cigarettes with a filter:

- in 2023 – 14,100 tenge /1,000 pieces;

- in 2024 – 15,900 tenge/1,000 pieces;

- in 2025 – 15 900 tenge /1000 pieces.

The rates of excise duty on cigarillos are also equated to the rates of cigarettes.

For products with heated tobacco, the excise tax rate is determined at the level of 70 percent of the size of the excise tax rates for cigarettes with a change in the unit of measurement from a kilogram to pieces:

- in 2023 – 9,870 tenge / 1000 pieces;

- in 2024 – 11 130 tenge / 1000 pieces;

- in 2025 – 11 130 tenge / 1000 pieces.

In addition, amendments have been made to Article 43 of the Law of the Republic of Kazakhstan "On the Enactment of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (Tax Code).

According to the changes, the rate for nicotine-containing liquid in cartridges, tanks and other containers for use in electronic cigarettes has been increased, which will amount to:

– in 2023 - 53 tenge/milliliter of liquid;

- in 2024 – 55 tenge/milliliter of liquid;

- in 2025 – 55 tenge / milliliter of liquid.