Russian Government discusses cigarettes excise tax increase

UFA, 9 November 2016. /Bashinform News Agency, Olga Murtazina/. Today, on November 9, the Russian Government will discuss raising ad valorem part of the cigarettes excise duty: 14.5 percent instead of the planned 13. It was found out by the "Kommersant" newspaper. The initiator of the excise increase was the Ministry of Finance of the Russian Federation. The State Duma has already approved an increase of the specific part of the excise duty by 10 percent - to 1560 rubles per 1,000 cigarettes.

As a result, the cost of a pack in 2017 could grow by 14-16 rubles plus increase in production costs. In addition, the authors of the bill propose to add electronic cigarettes to the list of excisable goods, RBC specifies. In case of such decision, the excise tax rate on them will be 40 rubles per item, on the nicotine liquid - 10 rubles per 1 ml.

The specific part of the excise duty is paid by manufacturers depending on the number of cigarettes sold. Ad valorem is a payment based on a fixed interest rate on the value of the goods. In 2016 it is paid by sellers for the sale of cigarettes more expensive than 71.7 rubles per pack.