Topic: Excise

General description of Excise Excise and excise taxation in Tajikistan

General description An excise or excise tax (sometimes called a duty of excise special tax) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.

Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.

An excise is considered an indirect tax, meaning that the producer or seller who pays the tax to the government is expected to try to recover or shift the tax by raising the price paid by the buyer.

In common terminology (but not necessarily in law), an excise is distinguished from a sales tax or VAT in three ways: (i) an excise typically applies to a narrower range of products; (ii) an excise is typically heavier, accounting for a higher fraction of the retail price of the targeted products; (iii) an excise is typically a per unit tax, costing a specific amount for a volume or unit of the item purchased, whereas a sales tax or VAT is an ad valorem tax and proportional to the price of the good.

Typical examples of excise duties are taxes on gasoline and other fuels, and taxes on tobacco and alcohol (sometimes referred to as sin tax).

2) Excise and excise taxation in Tajikistan The production of excisable goods on the territory of the Republic of Tajikistan and/or the importation of excisable goods shall be subject to excise taxes, with the exception of cases in which they are exempt from this tax

Taxpayers of excise taxes shall be all individuals and legal entities engaged in the production of excisable goods on the territory of the Republic of Tajikistan and/or the importation of excisable goods.

Object of Taxation 1) in the case of excisable goods produced on the territory of the Republic of Tajikistan, the release of excisable goods outside the production premises (workshop) shall be a taxable transaction, including: a) the delivery of excisable goods, other than deliveries for export; b) the transfer of excisable goods for processing on the basis of customer-supplied raw materials;

c) the delivery (transfer) of excisable goods that are the product of processing of customer- supplied raw materials and supplies, including excisable customer-supplied raw materials and supplies; d) the contribution of excisable goods to the statutory fund (authorized capital); e) the use of excisable goods when making payments in kind; f) the shipment (release) of excisable goods by a manufacturer to its separate subdivisions; g) the use by a manufacturer of excisable goods it has produced for its own production needs;

2) in the case of imports, the importation of excisable goods onto the territory of the Republic of Tajikistan in accordance with the customs legislation shall be a taxable transaction; 3) the delivery (transfer) of confiscated and/or unclaimed excisable goods, excisable goods bequeathed to the state, and excisable goods transferred to the state on an unrequited basis; 4) the damage or loss of excisable goods.

List of Excisable Goods in Tajikistan 1) spirits, nonalcoholic and alcoholic beverages; 2) processed tobacco and industrial tobacco substitutes; 3) mineral-based fuel, petroleum and refined petroleum products; bituminous substances; mineral waxes; 4) new tires and rubber pneumatic tire casings, reconditioned or used tires and rubber pneumatic tire casings; solid or semi-pneumatic tires and tire casings, rubber tire treads and rim strips; 5) passenger cars and other motor vehicles intended for transporting people; 6) jewelry made of gold, platinum, or silver. 7) cell-phone service

Excise Stamps The Republic of Tajikistan government shall identify excisable goods, both domestic and imported, which require excise stamps. The importation and/or sale of such excisable goods without excise stamps shall be prohibited. Tax authorities shall have the right to seize such excisable goods that are offered for sale without excise stamps following the established procedure.