Tax Code Amendments Raise Excise on Cigarettes and Vape Liquids
The Federation Council approved changes to the Tax Code that raise excise taxes on cigarettes by 2 percent and on vape liquids by 11 percent. The changes take effect March 1. The upper chamber’s press service published the information on its website.
Excise taxes on liquids used in electronic cigarettes will rise to 20 rubles per milliliter. From March 1 to December 31, 2023, the rate will be 21 rubles, in 2024 it will reach 22 rubles per milliliter, and in 2025 it will stand at 22 rubles per milliliter. The current rate is 18 rubles per milliliter.
The excise on cigarettes was increased to 3,536 rubles per 1,000 pieces for 2023. For 2024 the rate is planned to reach 3,678 rubles per 1,000 pieces, and for 2025 up to 3,825 rubles per 1,000 pieces. The present excise stands at 3,467 rubles per 1,000 pieces.
Concurrently, the new law eliminates the excise tax previously applied to electronic nicotine delivery systems and tobacco heating devices.
In related analysis, Olga Lebedinskaya of the PRUE Department of Statistics Faculty notes that after the March 1 tax changes, the monthly expenditure of smokers could rise by about 60 rubles per month. This assessment appears in internal briefs reviewed by researchers and cited by economists.
Reports this week indicate that the Ministry of Finance proposed criminal liability for the manufacture and sale of unlicensed tobacco products. If the proposal becomes law, producers and suppliers of counterfeit goods could face up to three years in prison. The objective is to strengthen enforcement against illicit products and protect public health and tax revenue.