The excise-duty for imported cigarettes from tobacco and its substitute increased from 50% from custom cost or less than US$7 per 1,000 units to US$10 per 1,000 units.

The excise-duty was increased to support monopoly producer of tobacco producer British American Tobacco Uzbekistan (BAT Uzbekistan).

BAT Uzbekistan purchased 51% shares of Uztabak in 1994 and created UzBAT A.O. JV, currently BAT Uzbekistan. The charter capital of the venture was US$247.4 million. Currently, BAT owns 97.35% share in the venture, State Property Committee of Uzbekistan holds 2.25% shares and labour – 0.4%.

The venture produced 7.903 billion units of cigarettes (up 50.2% year-on-year) and 5,688 tonnes of tobacco (up 30.6% year-on-year). No data is available on production volume in 2007.

BAT Uzbekistan invested US$292 million in Uzbekistan, of which US$100 million is the cost of cigarette plant in Samarkand with capacity of 12 billion cigarettes a year. British firm realizes 23 types of cigarettes, of which 16 produced at the venture.