Govt seeks to raise excise duties on alcohol, tobacco in 2012-2014

MOSCOW, August 5 (Itar-Tass) — Russia’s government submitted to the State Duma for consideration a draft law on increasing excise duties on alcohol and tobacco in 2012-2014.

In 2012 the excise duties will be indexed twice – as of January 1 and as of July 1.

The Finance Ministry plans to set an excise duty for alcohol products containing no more than 9 percent of ethanol equalling 254 roubles (one dollar is about 28 roubles) per one litre of pure alcohol from January 1 to June, 30 2012; 300 roubles – from July 1 to December 31; 400 roubles in 2013 and 500 roubles in 2014.

The excise duty will be also increased for beer containing no more than 8.6 percent of ethanol.

An increase in excise duties on tobacco and tobacco products in the period until 2015 is aimed at reducing smoking in Russia.

Thus, excise duties for tobacco will reach no less than 460 roubles per 1,000 cigarettes from January 1 to June 30, 2012, no less than 510 roubles from July 1 to December 31, no less than 730 roubles in 2013 and no less than 1,040 roubles in 2014.

“These measures coincide with the state policy on reduction of tobacco and alcohol consumption,” the first deputy head of the State Duma property committee, Dmitry Sablin, said in his comments on amendments to the Tax Code. “International experience shows that pricing and tax regulators prove most effective in restricting affordability of these goods for the population, mainly for the youth.”

In reply to the question whether an increase in excise duties will trigger the growth of the bootleg market, the parliamentarian noted that “anti-alcohol and anti-tobacco policies should be comprehensive and they are not restricted only by price hikes.” At the end of its spring session the State Duma adopted a package of laws toughening control over the production and marketing of alcohol.

Sablin also called for conducting different regional campaign to promote a healthy lifestyle.

“We will continue work in these direction,” he said. 

Leave a comment