In 2024, discussions emerged about introducing an excise tax on all alcohol produced in Russia, including medicinal alcohol. The plan predicts additional budget revenues of 15 to 20 billion rubles. Yet the timing hinges on developing a mechanism that would keep prices for socially important medicines stable. The information is reported by a financial institution linked to Aleksei Sazanov and Interv, with coverage from RIA News.
In early October, Anton Siluanov, head of the Ministry of Finance, stated that the ministry supported the idea of applying an excise to all ethanol produced in Russia and reported no disagreements with the Ministry of Health. He stressed, however, that this should not lead to higher prices for alcohol-based medicines. By mid-October, Sazanov indicated that both ministries were exploring ways to avoid price increases for essential drugs while introducing the excise on medical alcohol, aiming to finalize the work within about a month.
Sazanov noted that the tax period for consumption duties is one month, which means the tax implementation does not have to coincide with January 1. He added that the special consumption tax would not be imposed this year but could be introduced next year, potentially from February 1 or March 1.
The deputy minister emphasized that the challenge does not lie in the principle of levying an excise, since it would require only modest changes to tax legislation. The key task is to determine the overall architecture and mechanism for subsidies to drug manufacturers and the list of subsidized medicines. Consequently, the timing of the tax depends on finding a way to prevent price increases for socially important medicines.
However, Sazanov argued that the proposal could address the underground alcohol market because all alcohol—whether used for beverages, perfumes, technical purposes, or the production of medicines and narcotics—would be subjected to excise duties. This would reduce advantages for non-consumable alcohol and push the illegal market toward minimal activity, he added. Estimates place the potential revenue increase at 15 to 20 billion rubles, contingent on how much medicinal alcohol is misused and diverted from legitimate channels.
Earlier statements urged cautious optimism about the plan, recognizing the need to balance revenue generation with the affordability of essential medicines and social protections. The discussion continues as policymakers weigh the implications for public health, industry pricing, and regulatory detail.