Strong alcohol may become cheaper

For the next 3 years, the Ministry of Finance of the Russian Federation proposes to work on finding ways to reduce the excise rate for alcohol with a strength above 9 degrees. The proposal was based on a significant proportion of counterfeit products. According to published statements, the Ministry of Finance is soon preparing to send a draft on the «Main Direction of Tax Policy». According to the paragraphs of the document, the government is proposed to reduce the excise rates of alcohol, stronger than 9 degrees. On the part of officials, it is proposed to exclude the procedure for increasing the excise tax in 2015 and leave 500 rubles (it was planned to establish 600 rubles per liter of alcohol). At the same time, it is recommended to set the excise tax at the level of 600 rubles in 2016 (it was planned to 660 rubles), and already in 2017 the excise should be at the level of 660 rubles. It is worth noting that Dmitry Medvedev, the Prime Minister of the Russian Federation, on April 8 raised the question of reducing the excise tax to the department. Manufacturers claim that smuggling and counterfeiting can completely take over the market if not taken seriously. For information, for 5 years the excise tax has been increasing annually, and reached 500 rubles from 210 rubles in 2010 (an increase of 138 percent). Based on this, the price of retail alcohol has also increased, which now stands at 199 rubles per 0.5 liter (89 rubles in 2010). According to Dmitry Dobrov, who heads the Union of Alcohol Producers, the increase in taxes triggered a 16 percent cut in vodka production. Whereas the end consumer got the opportunity to buy cheap counterfeit. Now counterfeit products on the alcohol market in Russia have captured 50 percent of the turnover. The most common counterfeit was vodka. For your information, in 2013 the Russian Federation ranked second among the countries of the world when assessing the cost of alcohol per person. This information was disseminated by Euromonitor (analytics). In 2013, Russians spent more than $ 61 billion on alcohol. It is estimated that nearly $ 22 billion was spent on spirits. At the same time, the Russians paid more than $ 27 billion for beer, and the remaining amount was spent on wine. If we talk about one citizen of the Russian Federation, then during the year, on average, 429 dollars were spent on alcohol (with an average weighted exchange rate of 13,662 rubles). But the share of alcohol in the total purchases of Russians is declining, amounting to 5.8 percent (6 percent in 2012). In terms of the share of alcohol in spending, Russians were «bypassed» by the residents of Estonia, where the figure was 6.5 percent. In the ranking for the Russian Federation — Belarus, Peru, Latvia and Lithuania (5.5%, 5.4% and 5.3% in the last two countries, respectively).