It Is Recommended Not to Drink or Smoke for Cash

The amended Criminal Code and the Code of Administrative Violations prohibit the sale for cash of alcoholic beverages, as well as the wholesale of tobacco products.

Yesterday the President of Azerbaijan signed a corresponding decree. Since January 1, cash sale of excisable goods (except for retail sale of tobacco products) in the amount of 50 manats, and their acquisition for further sale is punishable by a fine of 100 manats.

Purchase of these goods in the amount of 50 to 1,000 manats will result in a fine of 1 to 2 thousand manats or correctional labor for up to 1 year, possibly imprisonment for a year. If you exceed the amount of 1,000 manats, it will be punishable by correctional labor or imprisonment for up to 2 years.

The changes allow the retail sale of cigarettes in cash for personal use. If the buyer acquires tobacco for the purpose of sale, the cost is to be paid only through a bank or by payment cards. Violation of rules provides for a fine in the amount of 100 manats.

According to Turan's experts, these measures are intended to stimulate e-commerce across the country, which is today at 0.002% of the total retail turnover. In fact, for catering facilities in the capital it is not a problem, because almost all restaurants and cafes have POS terminals. But what about the regions, because the decree covers the entire territory of the republic? According to the report of the Central Bank of Azerbaijan Republic (CBA), by November 1, in the aggregate there had been installed 76,932 POS-terminals, of which the share of the province accounts for 37% of the "smart" devices.

Will the Ministry of Taxes, responsible for distributing them before the New Year, cope with this? Deputy Minister Natig Amirov in its comments about this was optimistic, but it is very doubtful with regard not only to remote villages, but even to the district centers in the periphery.

Regarding payment cards recommended by the Head of State, by November 1, their number was 5.7 million (4.5 million - debit cards and 1.11 million credit cards), that is minus 5.5% to top of the year.

Under current law, the list of goods exempted from the excise tax included three liters of spirits and 600 cigarettes imported by individuals for personal consumption. In the case of exceeding the limit they will have to pay customs duties. --17D-