From March 1, Russia raises excise taxes on cigarettes and vape liquid.
The relevant law amended articles 181 and 193 of part two of the Tax Code of the Russian Federation. The document was adopted by the State Duma on January 18, approved by the Federation Council on January 25, 2023. The President signed it on January 27, 2023.
According to the law, the excise tax on cigarettes and papirosas from March 1, 2023 to December 31, 2023 will increase by 2%, to 2603 ruble for 1 thousand pieces, plus 16% of the estimated cost calculated on the basis of the maximum retail price, but not less than 3 thousand 536 rubles for 1 thousand pieces (before that - 2 thousand 552 rubles for 1 thousand pieces plus 16% of the estimated cost calculated on the basis of the maximum retail price, but not less than 3 thousand 467 rubles for 1 thousand pieces).
In addition, the previously set increase schedule for 2024 and 2025 has also been revised. So, in 2024, the excise rate will be 2707 rubles for 1 thousand pieces plus 16% of the estimated cost calculated on the basis of the maximum retail price, but not less than 3 thousand 678 rubles for 1000 pieces (previously, 2654 rubles were provided for 1000 pieces plus 16% of the estimated cost calculated on the basis of the maximum retail price, but not less than 3606 rubles for 1000 pieces). The rate for 2025 is 2815 rubles per 1000 pieces plus 16% of the estimated cost calculated on the basis of the maximum retail price, but not less than 3825 rubles per 1000 pieces (2760 rubles per 1000 pieces plus 16% of the estimated cost, but not less than 3750 rubles per 1 thousand pieces).
From March 1, 2023, the excise tax on tobacco and tobacco products intended for consumption by heating (tobacco heating systems) will increase immediately by 10.6%. The rate will be at the level of 8669 rubles per 1 kg (7839 rubles per 1 kg). The rate for 2024 will increase to 9 thousand 16 rubles per 1 kg from 8 thousand 153 rubles, in 2025 — up to 9 thousand 377 rubles for 1 kg from 8 thousand 470 rubles.
Simultaneously with the increase in excise taxes, the law reforms the system for levying excise taxes on electronic nicotine delivery systems (ENDS): the collection of excise taxes on the systems themselves is canceled, while excise taxes will be levied only on the liquid they contain (regardless of single or multiple use). As a result, the excise tax on electronic nicotine delivery systems and devices for heating tobacco was excluded from the Tax Code - in 2023 it was planned at the level of 64 rubles a piece.
At the same time, the excise tax on liquids for electronic nicotine delivery systems is increased by 11%. From March 1, it is set at the level of 20 rubles for 1 ml (18 rubles), from 2024 - 21 rubles (19 rubles),in 2025 - 22 rubles (20 rubles).
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