The government is considering ways to reduce excise taxes on alcohol

The government is ready to consider the issue of reducing excise taxes on alcohol. The Vice Prime Minister Alexander Khloponin said at a meeting with the relevant departments and participants of the market, told “Vedomosti” the participants of the meeting.

According to the interlocutor of the newspaper, the issue of reducing excise duties were discussed in the context of the objectives to reduce the share of counterfeit goods in the market. The representative of the Vice-Premier confirmed that this issue was discussed at working meetings between concerned agencies. However, he stressed that officially this question has not been raised in the agenda is not worth it. This topic was not discussed with the Finance Ministry.

Top Manager of a large alcohol holding said in a conversation with “Vedomosti” that the government has never declared its readiness to consider the possibility of reducing excise duties. In 2014, the excise rate on spirits was frozen at the level of 500 rubles. for 1 liter for 2015-2016. It is expected that in 2017 it will be indexed by 5%.

At the end of June last year, Rosalkogolregulirovanie (PAP) objected to the Ministry of Finance proposed raising excise taxes on vodka. “The growth of the excise rate in 2014 has reduced not only the rate of growth of accruals and receipts of excises in the budget, but the production of legal products and an increase in the share of the illegal market”, — said the head of the analytical Department RAHR Alexey Anoshin. According to him, the further increase in excise duties on alcohol will not lead to additional budget revenues, and to increased criminalization of the industry.

In late January the Ministry of economic development agreed with the proposal to raise the minimum price for a bottle of vodka 0,5 l with 185 to 190 rbl. the Federal Antimonopoly service (FAS) has proposed to raise the minimum price of vodka up to 240 rubles.

In February 2015, the minimum retail price of vodka has been reduced from 220 to 185 rubles. It was the first time since the implementation of proper control mechanism in 2010. The reason for this step was clipping for cheap illegal alcohol. Then these measures have provoked discontent among the major market players.