Russia: New beer excises to be adopted

The Russian government has submitted to the Duma a bill, setting new excise rates on alcohol for the next three years, Kommersant published April 4. Ministers have mapped a plan to gradually increase the excises to match the anticipated inflation. Beer excises will be growing 7 percent annually.

A new bill sets out a plan to increase excise rates in the next three years. Excises on ethyl alcohol are to go up from 23.5 rubles to 28.4 rubles by 2010, while taxes on alcohol drinks will rise from 163 to 196 rubles.

Excise collections from alcohol drinks in 2006 were 55.4 billion rubles, the Audit Chamber reports.

Alcohol producers say that even a minor increase in excise rates will affect the industry. Those in the market note that lower excises would reduce prices on alcohol, which will eventually cut the share of black market alcohol sales.

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