An increase in the MRC for strong alcohol in Russia does not cause an actual rise in retail prices
alcohol price Russia | An increase in the minimum retail price (MRP) does not cause an actual increase in retail prices, but is an indicator for a business. This is reported by RIA Novosti.
“The established MRCs do not actually affect the level of retail prices, this is an indicative indicator so that inspectors can see that the products are legal,” said Pavel Shapkin, chairman of the National Union for the Protection of Consumer Rights. He added that if a product is sold cheaper, it means that it is illegal.
Director of the Center for Research on Federal and Regional Alcohol Markets (CIFRRA) Vadim Drobiz added that the minimum price reflects the socio-economic situation and the rise in value raw materials.
Earlier, the Ministry of Finance came up with an initiative to increase the minimum cost of vodka. From January 1, 2022, the minimum retail prices for vodka are expected to grow by 7.4 percent, from 243 to 261 rubles per half-liter bottle. In addition, prices for cognac will rise by 7.6 percent, from 446 to 480 rubles for the same volume. The cost of the brandy will rise from 324 to 348 rubles. The Kremlin replied to this that the president has no position on this matter and indicated that the increase in prices is a matter of economic expediency.
For his part, the deputy head of the budget committee of the Federation Council Sergei Ryabukhin warned that the increase in excise taxes on strong alcohol risks leading to an increase in the number of surrogates. The parliamentarian said that the Federation Council recommended the Ministry of Finance to abandon such a measure. He stressed that the budget is now balanced, and the National Welfare Fund has become strong enough, so the increase in excise taxes will have negative consequences.