Baku: Azerbaijan is set to increase excise taxes on alcoholic beverages and cigarettes starting in 2026. This change is outlined in the draft law “On the State Budget of the Republic of Azerbaijan for 2026.”

According to Azeri-Press News Agency, the current excise tax rate on potable alcohol, including undenatured ethyl alcohol with various alcohol content, arak (vodka), fortified beverages, liqueurs, and cognac, is 4.8 manat per liter. The proposed draft law plans to raise this rate to 5 manat per liter. Additionally, the excise tax on energy drinks will see an increase from 3.1 manat to 3.3 manat per liter, while unfortified alcoholic beverages with an alcohol content not exceeding 9% will have their excise tax raised from 0.4 manat to 0.5 manat per liter.

Moreover, the excise tax rate on cigarillos, cigarettes made from tobacco, and their substitutes will experience a significant rise from 45.5 manat to 55 manat per 1,000 units. These amendments are part of the government’s broader fiscal strategy as outlined in the 2026 state budget draft.