The tax burden on wine producers is not expected to change, so the higher excise taxes on wine products should not drive consumer prices higher. This was reported by the press service of the Ministry of Agriculture of Russia via TASS.
Winemakers continue to be eligible for a tax deduction on used grapes when paying excise duty, effectively paying only 1 ruble per liter of wine, the ministry’s message states.
On April 14, Abrau-Durso, one of Russia’s largest wine producers, announced that partners will raise wine prices starting May 13, 2024. The increase will range from 7% to 35% depending on the product.
The company attributed the upcoming price adjustments to a threefold rise in consumption tax rates starting May 1, 2024, as well as higher costs for basic and auxiliary production materials, components, and transportation.
Experts warn that new industry regulations may undermine the progress achieved in recent years toward expanding wine consumption in Russia.
On the same day, Igor Gubin, a member of the board of directors of the Russian Union of Winegrowers and Winemakers, explained that wine prices will rise by an average of about 100 rubles starting in May.
It was also public knowledge that the largest wine producer, Kuban-Vino, has been moved into state ownership.