Rates of excise duties on cigarettes rose by 10% from July 1, up to 1,718 rubles ($27.3) per thousand pieces. The previous rate of 1,562 rubles ($24.88) operated from 2017.
The next time these duties will grow on January 1, 2019 — by 14.5%, up to 1,890 rubles ($30.11). Such a rapid growth of the tax burden on this marketplace aims at reducing tobacco consumption.
In addition, manufacturers and importers of tobacco products will become participants of an experiment on the marking of tobacco products, starting from July 1. Special means of identification are applied to consumer, group and transport packaging, and the information will be entered into the information marking and monitoring system. Via a mobile app, consumers will be able to learn about the place of production and the status of tobacco products, or to submit a complaint in case of inconsistency between the received data and reality.
Also from July 1, tobacco production and movement across the border of the Customs Union or across the border of Russia with Member States of the Union shall be accounted for on the basis of customs and taxation data, as well as the marking system and manufacturers’ own accounting systems.
Sergei Golovko, representing one of the largest manufacturers of tobacco products, believes that the introduction of mandatory digital marking may establish technical barriers to prevent illegal cigarettes from entering the Russian market. According to a study by Kantar TNS, the share of illegal tobacco products rose by 7.7% in Q1 2018 due to growing illegal flows of cheaper products from the EEU and an increasing share of a relatively new category of tobacco products, admitted in circulation without special stamps, with suspicious excise labels or with a supposedly authentic brand name but unreasonably low prices, the expert says.


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