The Ministry of Industry and Trade did not rule out a rise in prices for Russian wines due to increased excise taxes

An increase in excise taxes on wine could lead to an increase in prices for Russian wines. However, the price increase will be insignificant, and the decision on this should not harm either business or consumers, said Deputy Head of the Russian Ministry of Industry and Trade Viktor Evtukhov. From May 1, excise tax rates on wines, with the exception of fortified wines, will increase from 34 rubles. up to 108 rub. for 1 l.

“I think that the decision will be made in a balanced and reasonable manner so that it does not affect either consumers or producers,” he said (quoted from the Agroexpert portal). Mr. Evtukhov added that before making any decisions, it is necessary to discuss everything with associations and wine producers. According to him, excessive price increases will lead to buyers simply moving to another segment of the alcohol market and not buying wine.

April 14, Russian wine company Abrau-Durso notified distributors and sellers about price increases for their products in the range from 7% to 35%. One of the reasons is a change in excise tax rates. Company President Pavel Titov said “Interfax”that such a decision was made under the influence of general economic factors. He also called raising excise taxes a useful measure that protects domestic producers.

Excise tax rates on wine in Russia may increase due to amendments to the Tax Code, which the Russian government submitted to the State Duma in September 2023.

Read more about this in the Kommersant article. “Obviously due to guilt”.

Evgeny Belousov