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Russian Free Press

The Ministry of Finance will increase taxes on alcohol

September 27, 2022
in Daily News
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The Ministry of Finance intends to raise the minimum prices for all alcohol with a strength of 28% from January 1, 2023. Such an initiative is reflected in the draft order, which is posted on the portal of legal acts.

Retail prices for strong alcohol will grow by 7.7-7.8%. The minimum cost of a bottle of vodka in retail will be increased by 7.7% - from the current 261 rubles to 281 rubles, and the cost of a bottle of cognac will also increase by 7.7% - from 480 to 517 rubles per bottle. The minimum price of brandy will rise by 7.8%, from 348 to 375 rubles.

From 2023, the minimum selling price of manufacturers will also increase - from the current 214 rubles to 229 rubles per 0.5 liters, and the wholesale price - from 222 to 238 rubles, respectively. The minimum selling price for brandy will increase from 270 to 289 rubles, wholesale - from 284 to 304 rubles for a 0.5-liter bottle. The selling price of cognac will increase from 371 rubles to 397 rubles, wholesale - from 391 to 419 rubles.

Since the beginning of 2022, the consumption of strong alcohol has exceeded the same indicators of the previous year by 8.4% and is currently estimated at 72.35 million decaliters. In 2021, a total of 66.75 million decaliters of alcoholic beverages with a strength above 9% were sold in Russia. From January to August 2022, vodka production in Russia increased by 9.17% to 49.97 million deciliters, while consumption increased by 7.11% to 49.39 million deciliters.

From the beginning of September, the Russian authorities began to actively look for new ways to replenish the Russian budget. In less than a month, a direct or indirect increase in the tax burden may be faced by: oil and gas, coal and chemical industries , fertilizer production, business through an increase in property taxes . Ordinary Russians can also feel the increase in taxes through the accelerated indexation of housing and communal services. The sharp increase in tax initiatives is taking place against the background of information about a record drop in Russia's oil and gas revenues and the impossibility of drawing up a budget for the coming years without a deficit.

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