Circular on import duties and customs duties on cigarette imports
Iran’s customs announced the import of cigarettes in a circular on import duties and customs duties. Accordingly, the customs duty on the import of cigarettes according to the tables of the book of export and import regulations is 5% of the safe value; Meanwhile, the commercial profit of cigarette import is 20% of the FOB value based on the contents of the following note of Chapter 24 of the book of export and import regulations.
According to this circular, the import of cigarettes is subject to 40% of the duties based on the revenue line 160117 of the Budget Law of 2016; Meanwhile, according to the revenue line 160155 of the Budget Law of 2016, the import of each cigarette is subject to 500 Rials in duties.
Accordingly, cigarette importers must pay duties of 20 Rials per thread according to the revenue line 160144 of the Budget Law of 2016; Also, according to Article 163 of the Customs Law, half a percent of the import duty is received as Red Crescent duties from the import of cigarettes.
VAT on cigarette imports According to Article 16, VAT is 12%, which is collected from the safe value plus import duties, and at the same time, according to Article 38 of the Law on VAT, 3% of municipal taxes are collected from cigarette imports. The basis of its calculation is the value of the safe plus the entry fee. FOB value means the price of the goods in the port of origin and the value of the safe means the price of the goods in the port of origin plus freight to the destination port and goods insurance.