In 2023, the level of tobacco smuggling in Kazakhstan increased by 1.5 times compared to the previous year. While in 2022, the rate did not exceed 6.3%, it surged to 9.5% in 2023.
Experts point out that excise taxes, currently the main tool used by the Ministry of Health to combat smoking, have unintentionally led to a rise in contraband tobacco products. The high taxes have made cigarettes more expensive, driving consumers towards cheaper alternatives, such as smuggled goods.
The state faces challenges in monitoring every store for contraband products, as not every police officer can distinguish between counterfeit and genuine cigarettes. The limited resources of the state hinder the crackdown on retail smuggling. This calls for more systematic and serious approaches to tackle the issue.
Suggestions have been made to lower the threshold for legal consequences related to cigarette smuggling and to introduce criminal liability for repeat offenders. Additionally, there are existing laws that impose fines, but they are often seen as insufficient deterrents for smugglers who find it more profitable to pay fines than comply with excise taxes.
To address these issues effectively, experts propose lowering the threshold for legal consequences and introducing stricter penalties, which could serve as a deterrent for those engaged in tobacco smuggling in Kazakhstan.
