Increased tobacco excise revenues in neighbouring Kazakystan were not effective in terms of public health, as they did not lead to a decrease in cigarette consumption.
Last October, a law banning smoking cigarettes, and using other nicotine or tobacco-containing products in public was passed. Subsequently, the ban which according to head of the Tobacco Control Department of the Republican Health Promotion Center Chynara Bekbasarova, includes a ban on storing, wholesale and retail trade, and export of vaping products, has just came into effect this January.

Earlier this year, neighbouring Kazakystan announced various excise tax changes for tobacco and alcohol products, which will also go into effect in the 2022 tax year. An article on the World Bank Group pointed out that while the tobacco taxation policy practiced in Kazakhstan in 2003-2013 resulted in increased tobacco excise revenues, it was evidently not effective in terms of public health, as it did not lead to a decrease in cigarette consumption.

In 2014, tobacco excise taxes were drastically increased and tobacco affordability substantially reduced, and this resulted in a decline in tobacco sales and smoking prevalence in the country. However, in 2015-2019 the nation returned to a policy of moderate tax increases. The reduction in tobacco affordability in 2015 was caused not only by the excise increase but also by the tobacco industry pricing policy and a decline in incomes.

As for 2020–2021, the planned annual cigarette excise increase is of 12–14%, with an increase to 12,300 Kazakh tenge (US$29) from 11,000 tenge (US$26) per 1,000 cigarettes.

The arrival of nicotine alternative products on the market

With regards to alternative products, similar to trends found across the globe in recent years, electronic cigarettes and heated tobacco products (HTPs) appeared in the local market, with the main consumers being young adults. As of 2020, HTPs and e-liquids will be taxed as follows: an increase to 11,750 tenge (US$28) from 7,345 tenge (US$17) for per kilogram of tobacco mixture for products with heated tobacco; and an increase to 8 tenge (US$0.019) from 5 tenge (US$0.001) per milliliter for nicotine-containing liquids.

Read Further: AkiPress

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