Azerbaijan plans to raise excise taxes on alcohol, tobacco, and energy drinks as part of amendments to the Tax Code proposed in the 2026 state budget.
According to the draft, excise duties on locally produced alcoholic beverages – including ethyl alcohol, vodka, fortified wines and liqueurs, cognac, and brandy materials – will rise from 4.8 to 5 manats per liter, a 4.2% increase. The new rate is expected to take effect on January 1, 2026.
The government also intends to raise excise rates on energy drinks, both alcoholic and non-alcoholic. Under the proposal, the rate for non-alcoholic energy drinks will increase from 3.1 to 3.3 manats per liter (+6.4%), while for low-alcohol beverages (with up to 9% alcohol content) the rate will rise from 0.4 to 0.5 manats per liter, representing a 25% increase.
In addition, excise taxes on tobacco products – including cigars, cigarillos, and cigarettes made from tobacco or substitutes – will be raised from 45.5 to 55 manats per 1,000 units, a 20.9% increase.
Officials say the revisions are aimed at aligning tax policy with public health goals and increasing state budget revenues. The higher excise duties are part of a broader fiscal adjustment planned for the 2026 financial year.
