The Finance Ministry has proposed to double the excise tax on still wines

The Finance Ministry has sent the government a draft of the basic measures of tax policy in 2017-2019, in which he proposed doubling the excise tax on so-called still wines — wines that do not contain carbon dioxide. With the exception of fruit wines and wine beverages. About it writes “Kommersant”, which familiarized with the text of the document.

Excise duty on products imported grapes, the Finance Ministry proposes to increase from 9 to 18 rubles. per liter, on the Russian wine with a protected geographical indication and protected designation of origin — from 5 to 10 rubles.per liter.

Manufacturers welcomed the initiative of the Finance Department with confusion, because on the contrary expected support from the state, says “Kommersant”. As told the newspaper the President of the wine house “Abrau-Durso” Pavel Titov, the excise tax increase will reduce consumption and production of wine and stop the process of substitution of imported wine domestic.

Of tobacco the Ministry of Finance has also proposed to impose additional taxes. As written by Vedomosti, citing the Ministry prepared amendments to the article 193 of the Tax code, the tax proposes to tax tobacco products, which the producers have stored in warehouses at the end of the year before the next increase in excise duties.

In the draft guidelines for tax policy for the 2017-2019 year introduced a factor of 1.3, thus, the rate of excise duty will rise by 30%, said the newspaper.

The measure is intended to discourage cigarette companies to do inventories of the products, however, the Director for corporate relations “BATH Russia” Alexander Ljutyj has called the creation of inventories of legal practice. He explained that the peak of production of tobacco falls on the last months of the year, and during the long January holidays, the equipment at the plants is profremont.

In late September, the government proposed to reduce the excise tax on strong alcohol, including vodka, from 500 to 360 RUB to boost tax collection and to rehabilitate the market. However, the Finance Ministry said that “can’t afford in terms of structural deficit of the Federal budget reduced rates of excise duty on alcoholic products”.