Parliamentary Integration Commission Increases Cigarette Tax + Details

According to the economic correspondent of Fars News Agency, with the end of the approvals of the Parliamentary Budget Consolidation Commission, we will examine some of these rulings from the perspective of next year’s budget resources and expenditures.

One of the most controversial approvals is related to the tax on cigarettes. In Note 6 of the budget bill, the clause was added that a tax has been set on each cigarette.

According to Additional Clause 7, “From the beginning of 1401, at the retail price of each cigarette produced domestically with the Iranian mark amounted to 2,300 Rials, domestic production with the international mark (brand) amounted to 8,000 Rials, each imported cigarette amounted to 15,000 Rials and “Each 50-gram packet of domestic hookah tobacco will cost 30,000 riyals, and each pack of imported tobacco will cost 300,000 riyals.”

1- Each cigarette produced domestically with the Iranian logo is 230 Tomans

2- Each cigarette produced domestically with the international mark of 800 Tomans

3- 1500 Tomans for each imported cigarette

4- Each package of 50 grams of domestic hookah tobacco costs 3000 Tomans

5- Each package of imported tobacco is 30 thousand Tomans

It is predicted that about 18 thousand billion tomans of tax will be collected from this place. Of course, this measure was accompanied by a positive vote of the deputies, while the recent VAT law also imposes a tax on all types of tobacco and cigarettes.

According to the details of paragraph T of Article 26 of the VAT Law, the rates of various types of cigarettes and tobacco products subject to taxes and duties are as follows:

1- Cigarettes, pipe tobacco and domestically produced tobacco, 25% rate

2- Cigarettes, pipe tobacco and domestically produced tobacco with an international mark, the list of which was prepared by the Ministry of Silence and approved by the Council of Ministers at a rate of 40%

3- Imported cigarettes, tobacco and pipes, at a rate of 65%

4- Imported raw tobacco at the rate of 10%

5- Imported processed tobacco (tobacco harvest) at the rate of 35%

According to Davood Manzoor, head of the Tax Organization, the application of tax rates and duties on value added cigarettes and tobacco products came into force on January 4, 2010.

According to Fars, many experts believe that the increase in cigarettes, both domestic and imported, adds to the problem of smuggling of these goods. Some security agencies have even warned policymakers about this.

End of message /