Improving the collection of excise taxes will restrain rates

28.11.2022
#industry news

Pavel Shapkin, Chairman of the National Union for Consumer Rights Protection, Head of the National Alcohol Policy Development Center, noted that 95% of excise receipts in the beer industry are paid by 150 companies out of 1,800 operating in the market

Better administration of tax revenues from excisable goods will allow you to abandon the annual indexation of tax rates. This opinion was expressed by the chairman of the National Consumer Rights Protection Union, head of the National Alcohol Policy Development Center Pavel Shapkin.

"We have an indexation of excise rates since the new year. It is clear that the budget needs money, but if tax revenues were administered better, then, probably, such an indexation, at least annually, for excisable goods, which are mass-demand goods, probably would not be required. Because we would have received the same money, even more, if it had been better administered," he said during the round table "Marking by means of identification of food products: the results of the introduction of marking, prospects for expanding the food group of goods" in the State Duma.

According to the expert, 95% of excise receipts in the beer industry are paid by 150 companies out of 1,800 operating in the market. "And the system of regulation in the brewing industry by itself encourages companies to avoid reporting. Because what is it not to install counters for organizations that produce less than 300 thousand dal of beer per year? 300 thousand dal of beer is a truck a day, that is, it is not a small volume at all. That is, you don't want to report, you don't want to install anything, please don't show the volumes, and that's it," Shapkin added.

As reported by Deputy Finance Minister Alexey Sazanov, the Ministry of Finance of Russia is actively working on the introduction of a digital excise tax on tobacco and beer. According to him, it is assumed that the tax service will automatically calculate tax liabilities when products are put into circulation on the basis of information that is available in information systems for marking tobacco and beer.

In addition, Shapkin noted that legal market players are primarily interested in marking beer. "If we talk about beer marking, it`s exist in Georgia, Azerbaijan, Turkey and a number of other countries, it has been working perfectly for a long time. In general, it is strange when [in Russia] 80% of alcoholic beverages by volume are not marked at all, not licensed and poorly accounted for. And I think that bona fide market participants are interested in marking, first of all in order to exclude falsification and exclude this competition, because if you do not pay the excise tax, you immediately get substantial savings on cost, and if you can sell anywhere, then, accordingly, legal market participants suffer," he said. Shapkin.