An associate professor from the Department of Statistics at a prominent Russian university noted that Russia’s excise tax on cigarettes is set to rise starting January 2024. The change is expected to lift the minimum retail price of tobacco products to 117 rubles per pack, up from 112 rubles. Official reports indicate the tax movement will push prices higher as part of a broader effort to curb consumption.
According to the latest figures, the 2023 excise rate on cigarettes stood at 2,603 rubles per thousand sticks. Early plans had proposed raising this rate to 2,731 rubles per thousand plus 16% of the estimated cost. By late November, the rate was adjusted again, increasing by an additional 3%. The current framework sets the excise at 2,813 rubles per thousand pieces plus 16% of the estimated cost, with a floor of not less than 3,820 rubles per thousand.
Separately, there was chatter about a limited supply in the Christmas tree market this season. While shortages were not extreme, concerns persisted about rising prices for seasonal greenery.
Business sector insiders expect harvest activity to focus on about 55 thousand trees safeguarded on state forest lands this season. Government announcements also highlighted that Russians showed a strong preference for spruce, pine, and fir when purchasing for New Year celebrations.
In other monetary developments, the Central Bank of the Russian Federation recently lifted the key rate to a level of 16 percent, a move viewed by analysts as part of efforts to tighten monetary policy and stabilize the ruble. [Source attribution: national financial briefings; market observers]