According to HCH, Maxim Korolev, editor in chief of the industry news agency Russian Tabak, stated that Russia's proposed ban on e-cigarettes is a "radical measure".
In an interview with NSN, Korolev commented on a recent bill that would completely ban the retail of nicotine and nicotine free e-cigarettes in the Russian Federation "to save the people.".
Korolev said, "This ban is too radical because it will deprive a large number of Russians of the opportunity to obtain nicotine that does not contain carcinogens." He estimated the size of the affected population to be between 30 and 40 million.
At the same time, he pointed out that a large portion of tobacco sales in Russia have avoided taxes and regulations. "We are not very clear about what alternative options are available to smokers who want to quit smoking," Korolev said. "If it is possible to introduce legal products for alternative purposes in the future, such as those containing nicotine but carcinogens and not combustible tobacco, perhaps this is not the worst measure."
Korolev insisted that Russians should have the opportunity to choose alternatives to tobacco products.
"For decades, we have made all men inhale nicotine shots through military service: almost everyone has started smoking. Now, we need to give people the opportunity to use alternative options, and then simply ban everything indiscriminately."
In 2023, the smoking rate in Russia was 18.7%, lower than the 24.2% in 2019. In 2022, the number of smokers using e-cigarettes and e-cigarettes has significantly increased.
The Russian Ministry of Finance estimates that doubling the liquid tax on nicotine e-cigarettes will bring in 10 billion rubles. According to a recent report by TASS, the Russian Ministry of Finance estimates that doubling the liquid tax on nicotine e-cigarettes will bring in a profit of 10 billion rubles (approximately 800 million yuan).
Deputy Minister of Finance Alexei Sasanov said at a plenary session of the Federal Parliament, "We expect the revenue to be approximately 10 billion rubles.".
Previously, this tax rate had a mostly prohibitive effect, and we believe it will help increase budget revenue while reducing consumption of nicotine products.
This is his response to the expected economic benefits of increasing the liquid tax rate on nicotine e-cigarettes.
Previously, the Federal Commission approved a tax increase on tobacco products starting from 2024.
According to recently passed legislation, the tax rate on cigarettes and cigars will increase to 2813 rubles per thousand pieces plus 16% of the calculated price in 2024, but not less than 3820 rubles. In 2025, the cigarette tax rate will be further increased to 2926 rubles per thousand cigarettes, plus 16% of the calculated price (not less than 3973 rubles). By 2026, the tax rate on cigarettes will be further increased to 3043 rubles per thousand pieces, plus 16% of the calculated price (not less than 4132 rubles).
At present, the tax rate for cigarettes is 2603 rubles per thousand units, plus 16% of the calculated price, with a minimum price of 3536 rubles.
The tax rate for nicotine e-cigarette liquids is expected to be 42 rubles per milliliter in 2024. It will increase to 44 rubles per milliliter in 2025 and further to 46 rubles per milliliter in 2026.
Russia implements a mixed consumption tax system for cigarettes, including ad valorem consumption tax based on Maximum Retail Price (MRP), quantity tax based on quantity, and minimum consumption tax. The rate is set as follows:
Starting from January 1, 2023: 2603 rubles per 1000 cigarettes, at a price of 16% of MRP, with a minimum consumption tax of 3467 rubles per 1000 cigarettes
Starting from January 1, 2024: 2707 rubles per 1000 cigarettes, priced at 16% of MRP, with a minimum consumption tax of 3678 rubles per 1000 cigarettes
Starting from January 1, 2025: 2815 rubles per 1000 cigarettes, at a price of 16% of MRP, with a minimum consumption tax of 3825 rubles per 1000 cigarettes
Post time:2024-04-22
