Excise taxes on tobacco and NCP have been increased in Russia

#industry news

Russian President Vladimir Putin has signed a law that, among other things, provides for the indexation of excise taxes on tobacco and certain types of alcoholic beverages. The document is published on the official portal of legal information.

The law provides for an increase in excise tax rates on tobacco products and tobacco, including those intended for consumption by heating, by 3% from January 1, 2024, compared with the previously established ones, and their subsequent indexation in 2025-2026. And the excise tax rate on liquids for electronic nicotine delivery systems (ESDS) is doubled.

As a result, the excise tax on cigarettes and cigarettes in 2024 will amount to 2813 rubles for 1 thousand pieces plus 16% of the estimated cost, calculated based on the maximum retail price, but not less than 3820 rubles; in 2025 - 2926 rubles plus 16%, but not less than 3973 rubles; in 2026 – 3043 rubles plus 16%, but not less than 4132 rubles. The excise tax on cigars will amount to 301 rubles, 313 rubles and 326 rubles for one piece, respectively; for cigarillos (cigaritas), bidi, kretek - 4284 rubles, 4455 rubles and 4633 rubles for 1 thousand pieces.

The excise tax on pipe tobacco, smoking, chewing, sucking, snuffing, hookah tobacco for 2024 will amount to 4448 rubles per kilogram, for 2025 - 4626 rubles, for 2026 - 4811 rubles; for tobacco for consumption by heating - 9367 rubles, 9742 rubles and 10 132 rubles, respectively; for liquids for ESDN - 42 rubles, 44 rubles and 46 rubles per milliliter.

The law also increases approximately three times the excise tax rates on certain types of alcoholic beverages from May 1, 2024, including wines (except fortified (liqueur) - up to 108 rubles per liter. In 2025, the excise tax on them will increase to 112 rubles per liter, in 2026 - to 116 rubles. And for sparkling wines, including Russian champagne, and wine drinks, excise taxes will increase from May next year to 141 rubles per liter, in 2025 to 147 rubles, in 2026 to 153 rubles.

For fortified (liqueur) wine, fortified wine in bulk and alcoholic beverages with a strength of over 18%, the excise tax from May 2024 will amount to 643 rubles per liter of anhydrous alcohol, in 2025 – 669 rubles, in 2026 – 696 rubles. For less strong alcoholic beverages, the excise tax from May 2024 will be determined in the absolute amount per liter of anhydrous ethyl alcohol as the ratio of a certain amount (141 rubles in 2024, 147 rubles in 2025, 153 rubles in 2026) to the volume fraction of ethyl alcohol in excisable goods.

The law, which contains other amendments, enters into force from the date of official publication, with the exception of provisions for which other deadlines are set.