Excise duties will increase by 3-4%. So, for ethyl alcohol and strong alcohol with an alcohol content of more than 9%, they will increase from 589 rubles to 613 rubles per liter of alcohol. And for beer 0.5-8.6% and beer drinks excise duty is modest even with the increase – 25 rubles per liter. The fee for cigarettes and cigarettes will increase from 3333 rubles to 3467 rubles per 1000 pieces.
Excise duties in Russia are indexed every year, most often for inflation. This implies an increase in the prices of excisable goods. For example, the excise duty on cigarettes over the past ten years has increased by more than 10 times, a pack of cigarettes – almost five times. So, in 2021, the excise rates on cigarettes, tobacco products, and e-cigarettes were immediately increased by 20%.
But for 2023-2025, it is planned to fix the indexation of excise duties at the level of 4% per annum, despite the fact that inflation in 2023 will be much higher, State Secretary – Deputy Minister of Finance Alexei Sazanov explained to RG. “In real terms, this will lead to a reduction in excise duties, which will provide some support for manufacturers,” he said. There are also exemptions for certain types of alcohol. For example, winemakers receive excise tax deductions, which supports the industry and encourages winemakers to grow and process Russian grapes.
Some experts, however, believe that the increase in excise duties on alcohol and tobacco will not lead to an increase in tax collection, but, on the contrary, will force companies to go into the shadows, since excise taxes are already high. This point of view, in particular, was held by the former head of the Accounts Chamber Alexei Kudrin.
Infographic “RG” / Alexander Chistov / Tatyana Karabut
It is the disproportion in excise duties in Russia and the EAEU that is called the main reason for the growth of illegal products on the Russian market. According to the National Center for Scientific Competence in the field of combating illicit trafficking of industrial products (NSCC), as of September 2022 it increased to 12.1% against 11.5% in the same period last year. Cheap cigarettes from neighboring countries are massively brought to Russia.
Compared to many other countries, our excise duties on alcohol are much higher, says Pavel Shapkin, director of the Center for National Alcohol Policy Development. At the same time, it is surprising that they are actively growing for alcohol and tobacco and, for example, benefit for hawthorn or cologne.
“If you want more taxes, manage them better, eliminate legal loopholes, look for places where there is almost no regulation, impose beer drinks and other products in accordance with current regulations,” the expert believes.