AZE.US
Cigarette prices in Azerbaijan may increase again in the coming days, with retail prices expected to rise by about 0.20 to 0.30 manat ($0.12 to $0.18) per pack, local media reported.
Some neighborhood shops, supermarkets and kiosks are reportedly holding off on accepting new cigarette deliveries as they wait for updated wholesale prices.
Natig Jafarli, chairman of the Republican Alternative Party and an economist, said the expected increase was likely linked to higher taxes and excise duties.
“Since this is not treated as a socially sensitive issue, the government can raise taxes relatively easily. This is common in many countries,” Jafarli said.
He added that any new increase in taxes and excise duties would likely be passed on to consumers through higher cigarette prices.
Jafarli said rising prices could also encourage more smokers to quit.
At the same time, he warned that the government should avoid creating a large price gap between Azerbaijan and neighboring countries.
“If cigarettes become excessively expensive in Azerbaijan, the number of people attempting to bring them into the country through smuggling could rise sharply,” he said.
AZE.US