The authorities intend to oblige the trade to obtain a special license for the sale of cigarettes and products containing nicotine: products with heated tobacco, vapes and more. Rosalkogoltabakcontrol proposed to the Ministry of Industry and Trade to introduce such a norm. According to officials, this will help to combat the illegal sale of these goods, as well as increase budget deductions due to excise taxes. Cigarette manufacturers are now subject to such control.
The law "On State regulation of production and turnover of tobacco products ...", which legalized new rules for manufacturers and sellers of cigarettes and nicotine products, entered into force in July 2023. These regulations obliged manufacturers to obtain a license. We are talking about permission to engage in activities for which you need to pay a state fee, as well as meet a number of requirements. According to the calculations of Rosalkogoltabakkontrol, this has already brought the treasury an additional income of 42 billion rubles, which was collected as excise taxes.
At the same time, the new regulation does not affect the trade itself — for the sale of cigarettes and products with nicotine, you do not need to obtain a license yet. Although this approach will allow for better control of the market for these goods, according to the documents of the service, which the federal service has already sent to the Ministry of Industry and Trade.
This proposal should be on the agenda of the State Commission on Combating Illegal Trafficking in Products, its activities are traditionally supervised by the Ministry of Industry and Trade. If such a rule is eventually approved, then in practice retail will have to buy a license in order to be able to sell the product. Without regulatory approval, sales of these products will be prohibited. Such rules are now in force for the alcohol market: trade and restaurants receive licenses for their shops and catering establishments.
The Ministry of Finance clarified to Izvestia that officials are still working on the issue of licensing in the wholesale and retail trade of tobacco products and nicotine products, it is premature to talk about its introduction.
— A large number of shops and small businesses are involved in the sales of these products in Russia. When the authorities determine the main possible parameters of such licensing, they will need to be further discussed with business and the public, the ministry said.
Izvestia sent requests to Rosalkogoltabakcontrol, the Ministry of Industry and Trade and the Ministry of Health.
According to the results of the first half of 2024, retail sales of cigarettes increased by almost 10% compared to the same period in 2023, sales of nicotine-containing products increased by 22% from April to September (retail joined the identification system only in the spring of 2024), the Center for Advanced Technology Development (CRPT, operator "An honest sign"). Labeling on the tobacco market has been introduced in stages since 2019, and in the second quarter of 2024, the level of illegal trafficking decreased to the lowest in recent years of 11.3%. Legal turnover in the nicotine products market is growing even faster: the number of retail outlets legally selling vapes has quadrupled: from 57.4 thousand stores in 2022 to 235.6 thousand in 2024.
The initiative of officials requires analysis, retail chains have not yet developed a unified position on this issue, the chairman of the Presidium of the Association of Retail Trade Companies (ACORT) told Izvestia Igor Karavaev.
— In general, we welcome proposals aimed at reducing the share of illegal tobacco products on the Russian market. With the introduction of digital labeling in 2019 and the development of online retail, the share of illegal cigarettes is decreasing: over the past year, according to the Ministry of Industry and Trade, it has decreased by 2 percentage points, the expert said.
One of the major cigarette manufacturers in the Russian Federation told Izvestia that the initiative of Rosalkogoltabakkontrol fits into the mainstream of state policy — to strengthen control over the turnover of tobacco products and combat the spread of counterfeit goods.
— However, much will depend on how the authorities implement this initiative. If the approach is thoughtful and balanced, for example, the cost of the license will not become a prohibitive tool or the licensing requirements will not be excessive, then this measure will be another step towards whitewashing the market, — said the source of Izvestia. — According to the results of the latest official study, in the second quarter of 2024, the share of illicit tobacco trafficking in Russia amounted to 11.3%.
According to the interlocutor of the editorial board, licensing of cigarette sales should not affect the price of the final product, but "if the promotion of goods along the supply chain becomes more expensive, this may indirectly affect its cost at the manufacturer," he noted.
Pavel Shapkin, head of the National Alcohol Policy Development Center, supported the authorities' proposal: licensing cigarette sales will help reduce their availability, because not all stores will purchase such a permit.
— Moreover, it will help to combat the illegal retail of tobacco products, which is flourishing in the border areas. Due to the difference in excise rates, cheaper cigarettes from neighboring countries are coming to Russia," he noted.
The threat of punishment for violation of licensing requirements will stimulate trade to sell only legitimate products with paid domestic excise taxes, he concluded.
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