According to amendments to the second reading of a bill on changes to the Russian tax system, the proposed changes include the following:
- Cigarettes:
- 2025: 2,945 rubles per 1,000 pieces plus 16% of the estimated cost (not less than 4,000 rubles per 1,000 pieces).
- 2026: 3,063 rubles plus 16% (not less than 4,160 rubles per 1,000 pieces).
- 2027: 3,186 rubles plus 16% (not less than 4,326 rubles per 1,000 pieces).
- Cigars:
- 2025: 315 rubles per piece.
- 2026: 328 rubles per piece.
- 2027: 341 rubles per piece.
- Cigarillos, Bidis, and Kreteks:
- 2025: 4,485 rubles per 1,000 pieces.
- 2026: 4,664 rubles per 1,000 pieces.
- 2027: 4,851 rubles per 1,000 pieces.
- Tobacco (excluding raw material for tobacco products):
- 2025: 4,657 rubles per 1 kg.
- 2026: 4,843 rubles per 1 kg.
- 2027: 5,037 rubles per 1 kg.
- Heated Tobacco:
- 2025: 9,807 rubles per 1 kg.
- 2026: 10,199 rubles per 1 kg.
- 2027: 10,607 rubles per 1 kg.
- E-cigarette Liquids:
- 2025: 44 rubles per 1 ml.
- 2026: 46 rubles per 1 ml.
- 2027: 48 rubles per 1 ml.
Excise taxes are indirect taxes on mass consumption goods within the country. These proposed changes aim to regulate the tobacco industry and generate additional revenue for the government. The amendments are part of the government’s ongoing efforts to control the consumption of tobacco products and address public health concerns.
The expected additional revenue from these changes is substantial. The increased rates are designed to adjust for inflation and other economic factors, ensuring that the tax burden on tobacco products remains consistent with the government’s fiscal policies.
In summary, the Russian government’s planned adjustments to excise taxes on tobacco products represent a significant effort to enhance regulation and revenue generation in the tobacco industry. The incremental increases over the next three years are expected to align with broader economic goals and public health initiatives.
