Russia’s Finance Ministry has proposed doubling excise duty on wine and raising taxes on cigarettes, the Kommersant newspaper reported Wednesday.
The plan will raise excise duty on foreign wines from nine rubles ($0.14) to eighteen rubles ($0.28) per liter. Taxes on Russian wines will increase from five rubles ($0.08) to ten rubles ($0.16).
The president of Russia’s Abrau-Durso winery, Pavel Titov, called it a “180 degree U-turn” in the government’s policy of supporting Russian producers.
He said that such a rise would cause the price of Russian wine to increase by 15 to 20 percent, leading to decreased demand.
Titov also claimed the move would would prevent investment in the industry.
The Finance Ministry is also set to increase cigarette tax by 10 percent, from 1250 rubles ($20) per 1,000 cigarettes to 1560 rubles ($25). This will make an average pack of cigarettes cost 109 rubles ($1.74), Vice President of Corporate Relations for the JTI tobacco company, Sergei Kiselyev, told Kommersant.
Government officials predict the taxes will bring in 243 billion rubles ($3.8 billion) to the public purse.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
