Turkmenistan raises tobacco taxes as the illicit tobacco products sector faces mounting pressure

Turkmenistan has raised tobacco tax rates and intensified efforts to combat illegal tobacco products, aiming to achieve a tobacco-free nation. The new tax law will take effect on January 1, 2024, posing a severe challenge to the illicit tobacco products sector.

According to reports from the Turkmenistan Golden Age website, the consumption tax on cigarettes and other tobacco products has been increased from 116% of the customs value to 145%. Additionally, the consumption tax on other industrially produced tobacco and tobacco alternatives has been adjusted from 24.4 to 30.5.

In February 2022, Turkmenistan adopted a national plan aimed at transforming the country into a tobacco-free nation between 2022 and 2025. In November of the same year, the country legislated to prohibit the sale of cigarettes to individuals under the age of 21.

In June of this year, Turkmenistan's President Serdar Berdymukhamedov proposed at a national security meeting the need for stricter measures against the illegal import, sale, and use of illegal tobacco products, tobacco accessories, shisha mixtures, and vaping devices.

The new tax law will undoubtedly have a significant impact on industries such as illegal tobacco products.