The excise tax on cigarettes and alcoholic beverages will be increased.
Publika.az reports that this is provided for in the next amendment to the Tax Code.
Also, micro-entrepreneurs whose average monthly number of employees is less than three and who owe mandatory state social insurance contributions will pay 20 percent of their income instead of 5 percent.
But can these or other changes to the Tax Code cause a price increase?
Economist Ayyub Karimli said that the said change will have certain effects on the price increase of cigarettes and drinks:
“However, other food products will not have such a significant effect on the increase in the price of the consumer basket, because alcoholic beverages and tobacco products are not included in the consumer basket.”
Eyyub Karimli believes that increasing the tax rate will encourage micro-entrepreneurs to sign employment contracts with unregistered workers. Otherwise, entrepreneurs will have to pay more taxes. Economist Rashad Hasanov does not think so:
“Increasing excise taxes will result in an increase in the price of tobacco products and alcoholic beverages. This will manifest itself in 40 kopecks for 0.5 liter alcoholic beverages and 80 kopecks for one liter.
In tobacco products, 10-15 kopecks will be added for one package. At the same time, it will cause the tax burden of entrepreneurs to increase four times.”
According to the expert, this may indirectly lead to an increase in prices. But in addition to that, among the changes to be made to the Code, it is also reported that there are provisions to reduce the tax burden of entrepreneurs. One of them is a 75 percent reduction in the property tax of enterprises that provide accommodation in the regions.
More in the plot of Baku TV:
#products #expensive #VIDEO