Russia plans further gradual increase in excise duties on tobacco. This was during the third Armenian-Russian healthcare forum in Yerevan was declared by the Russian Minister of health Veronika Skvortsova, reports RIA Novosti.
“Russia has been increasing the excise taxes on tobacco products and plans to continue their gradual increase,” she said. According to the Minister, also addressed the agreement on the harmonization of excise duties on tobacco products between the two countries.
“We pay special attention to the raising of excise rates, as at present accepted that this is the most effective measure against Smoking. We also proposed to exclude the upper tolerance range of excise rates, as it will limit the possibility of increasing excise taxes individually by each state,” — said the Minister.
She also said that the Ministry of health in framework of realization of state policy to reduce tobacco consumption in the years 2017-2022 prepared a number of its own proposals.
Earlier in September, the Eurasian anti-tobacco coalition has written a letter to Prime Minister of Russia Dmitry Medvedev in which he asked to bring the excise tax on tobacco products to the average European level. In the case of support of this initiative, the cost of a pack of cigarettes will be not less than 150 rubles.
In August, the company Philip Morris International (PMI, is 27.2% of the market according to Nielsen) and JTI (33.3%) addressed the Russian government with a proposal to introduce a single minimum retail price (MRTS) on cigarettes. JTI proposes to all cigarettes MRC, which would comprise 75 percent of the weighted average prices of the previous year.
The PMI calculated that currently the average price of cigarettes in Russia is 88 roubles for a pack. If JTI’s proposed mechanism for establishment of the MRC will be supported, in 2018, the cigarette will not cost less than 66 rubles. While in the JTI believe that this measure will not affect the interests of legal producers of cigarettes.