A 70% increase in excise rates for wine in Russia is likely to bring a 25-30% rise of prices for the drink, as well as create a huge market of illegal products, said Vadim Drobiz, Director, Research Center for Federal and Regional Alcohol Markets.
The Russian government wants to raise excise rates for wine from 2020 up to 31 rubles per liter from the current 18 rubles, for sparkling wines — up to 40 rubles per liter from 36 rubles. It is proposed to align excise duties on wine drinks without the addition of alcohol with excise duties on wine: for non-carbonated drinks, the rate will be 31 rubles, for carbonated drinks — 40 rubles.
Georgian winemaking and the economy as a whole will collapse after banning supplies to Russia, State Duma MP Gennady Onishchenko believes. A political expert Artur Atayev expressed the opinion that adequate measures should be taken against anti-Russian attacks.
“Prices for wine will grow by 25 or even 30%. Cheap wine, which costs within 200 rubles ($3), but it is more than 50% of wine on the market. It may have a significant impact on wine consumption,” Vadim Drobiz commented.
In his words, if excise duties on wine drinks were not increased, Russians would consumer more of them. “However, the state wants to raise excise rates for wine drinks. This decision will promote the creation of a huge illegal market for wine products. Similarly to vodka: there is a high excise duty, so we have an immense illegal vodka market. This is the key negative consequence,” the expert believes.
At the moment it is necessary to change the structure of alcohol consumption in Russia, he notes In the USSR, wine consumption was 16 liters per capita per year, wine products in general (including wine) — 27-28 liters, beer — about 24 liters, strong alcohol — 10 liters per capita per year.
“Today we drink 3.5 liters of wine, 7.5 liters of wine products, more than 50 liters of beer along with beer drinks, strong alcohol — at least 15 liters per capita,” Drobiz said, adding that higher excise duties on wine would worsen wine consumption and perception of this drink.


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