Russia to raise liquor, cigarette tax

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IANS/RIA Novosti | 30 Apr, 2012
Russia, a country of vodka drinkers, may raise tariffs on hard liquor to about 20 percent a litre by 2015, according to a draft tax document issued by the finance ministry. Tax on cigarettes will also increase.

Excise on anhydrous ethanol will be increased to 600 rubles ($20) per litre, the document said.

One litre of anhydrous ethanol is used to produce about five half-litre bottles of vodka.

Excise duties on anhydrous ethanol rose from January 2012 by over nine percent from 231 rubles to 254 rubles a litre of spirits. From July 1, it will rise to 300 rubles.

From thereon, excise duties will rise to 400 rubles from 2013 and 500 rubles by 2014.

Growth in duties on beer will slow by 2015, compared to the last three years, but will reach 20 rubles a litre by 2015.

According to the ministry, excise on cigarettes should rise to 960 rubles per 1,000 cigarettes plus nine percent of estimated maximum retail value, but no less than 1,250 rubles per 1,000 cigarettes in 2015.

Excise on cigarettes is currently 360 rubles per 1,000 plus 7.5 percent of maximum retail value. The document said it should rise to 550 rubles plus eight percent in 2013 and 800 rubles plus 8.5 percent in 2014.