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They want to set a single minimum price for cigarettes in Russia - EastRussia | Far East

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They want to set a single minimum price for cigarettes in Russia

They want to set a single minimum price for cigarettes in Russia
Photo: pixabay.com

Russian State Duma deputies propose introducing a single minimum price for cigarettes. They prepared a bill proposing amendments to the tax code and have already submitted it for consideration. According to parliamentarians, it will effectively deal with illegal tobacco products that have flooded the Russian market.

According to "Rossiyskaya Gazeta", the minimum price will be calculated on the basis of the lowest excise rate per pack, as well as VAT. For example, this year it would be 86 rubles and would make senseless the sale of illegal cigarettes, which you can now buy, starting from 45-55 rubles per pack.

This cost is lower than the tax component. Each legal pack contains 62 rubles for excise taxes and VAT. According to experts, the share of illegal tobacco in the Russian market has grown from 7,7 to 10,3%. The new law should affect the situation, it will affect only illegal producers and sellers.