sign up

< Back to Heated Tobacco Products Tax Gap Map

Tax Gap of Heated Tobacco Products in Kazakhstan

Heated tobacco products were introduced in the tax code of Kazakhstan in 2017, when PMI launched IQOS in the country. On December 25, 2017, the tax code was amended to create a new tax category for heated tobacco, defined as “tobacco products intended for inhaling an aerosol produced as a result of heating tobacco electronically or otherwise, without tobacco burning process” (Article 41). However, the excise tax rate was set to 0 KZTper kilo, effective Jan 1, 2018.

Starting Jan 1, 2020, the rate was increased to 7,345 KZTper kilogram of tobacco mixture. The law was amended on Dec 12, 2020, including an increase in the excise tax on heated tobacco to 11,100 KZT per kg of tobacco mixture on Jan 1, 2021 and to 11,750 KZT per kg on Jan 1, 2022 (Amendment 382-VI).

Kazakhstan uses a specific excise tax system to tax cigarettes, with tax tiers based on cigarette characteristics (imported/local, filter/non-filter). As of January 1, 2020, the specific excise tax rate was 9900 KZT per 1000 sticks. The tax was increased to 11,000 KZT per 1000 sticks starting Jan 1, 2021. Amendment 382-VI increases the rate further to 12,300 KZT starting Jan 1, 2022.

Sources

  • Code of the Republic of Kazakhstan No. 120-VI “On taxes and other obligatory payments to the budget (Tax Code)”, Dec 25, 2017
  • Law of the Republic of Kazakhstan No. 382-VI “On amendment and additions to the Code of the Republic of Kazakhstan”, Dec 10, 2020
  • Law of the Republic of Kazakhstan No. 121-VI “On taxes and other obligatory payments to the budget (Tax Code)”, as of 01.01.2021

Last Updated Feb. 22, 2021