Ministry of Finance plans to abandon paper excises on beer and tobacco from 2024

In the first quarter of 2024, Russia will begin maintaining a digital excise tax on tobacco and beer, RIA Novosti reports with reference to the road map of the Ministry of Finance. According to the document, from May 2023 to July 2024, it is planned to conduct a pilot project on the use of labeling and traceability data during tax audits.

“The Ministry of Finance of Russia, together with Operator-CRPT, was instructed to develop and approve an action plan (roadmap) for the implementation of the transition to the payment of excise taxes on tobacco and nicotine-containing products from 2024 on the basis of data on its labeling by means of identification, the Ministry of Finance of Russia sends the draft plan for approval measures (roadmap) to refuse the application of federal special (excise) stamps on tobacco products from 2024,” the document says.

It is expected that the pilot project will confirm the possibility of using labeling data to calculate the excise tax on tobacco and nicotine-containing products, sugar-containing drinks, beer and beer drinks by the tax authority. It is also planned to evaluate the possibility of refusing to declare excise duty and switching to a non-declaration regime. The transition to commercial operation of the automated information system of the Federal Tax Service (AIS Nalog-3) and the state information system for monitoring the circulation of goods is scheduled for the first quarter of 2024.

In December 2022, Deputy Finance Minister Alexei Sazanov informedthat the agency proposes to bring excise rates on nicotine-containing liquids to the level of excise taxes on cigarettes. He said that the initiative was discussed in the government. Manufacturers of electronic cigarettes asked authorities not to raise excise taxes. Also Ministry of Finance offered introduce criminal liability for the production and sale of counterfeit cigarettes.

Laura Keffer