The 2010 Uzbek state budget will see excise taxes of up to 50 percent levied on alcohol and cigarette producers. The new costs will be passed on to the consumer.
"The excise tax for alcohol products, beer, cigarettes with filters and alcohol will increase by 25 percent and for cigarettes without filters by 50 percent," the news website Uzdaily.com reported on December 9.
"The decision was appointed to harmonize taxation on alcohol and tobacco producers in Uzbekistan due to the high profitability of production," the report added.
Excises taxes on both items are also known as 'sin taxes.' The taxes are often enacted to increase state revenues quickly. However, it can also contribute to the creation of underground networks of illegal suppliers.
Sign up for Eurasianet's free weekly newsletter. Support Eurasianet: Help keep our journalism open to all, and influenced by none.