Financial Tribune- Cigarette tax will increase in the next fiscal year (starting March 21) as approved by members of the Iranian Parliament on Saturday.

The duty for retail prices of locally and jointly produced Iranian cigarettes will increase by 75 rials (0.15 cents) and 150 rials (0.31 cents) respectively, tax on local products with international brand names will rise by 250 rials (0.53 cents), while 600 rials (1.27 cents) will be added to the retail prices of imported cigarettes next year, IRNA reported.

Close to 40 billion cigarettes were produced in Iran during the first 10 months of the current Iranian year (started March 21, 2017), registering a 12% increase compared with last year�s corresponding period.

Imports over the period stood at 2.4 billion, showing a 35% fall year-on-year. It is estimated that close to 4 billion cigarettes were smuggled into the country during the 10 months, indicating a 41% decline YOY. Domestic cigarette production meets more than 90% of demand in Iran. Iranians annually consume close to 55 billion cigarettes.