Minsk hosted a conference titled "Belarusian Tobacco and Nicotine Products Market" to discuss pricing, taxation, and other related issues.
The timing of the discussion coincides with the upcoming harmonization of consumption tax rates. Regarding cigarette filters, Belarus currently charges 17.2 euros per 1000 while Russia charges 55.5 euros per 1000. This has resulted in Belarusian goods, which have the lowest consumption tax among all members of the Eurasian Economic Union, flowing into Russia.
The result of the unification is a significant increase in prices for tobacco products in Belarus. Research suggests that this will lead to a restructuring of the market. According to a survey, 27.2% of smokers surveyed stated that they are prepared to switch to another brand they like if prices rise. Additionally, if prices increase by two Belarusian rubles (nearly 50 Russian rubles), 23.4% of those surveyed are ready to quit smoking.
The sharp rise in prices is expected to lead to an increase in counterfeit goods. Russia has already taken steps down this path and Belarus cannot avoid similar problems. Therefore, it is necessary to jointly combat the shadow market and actively learn from successful experiences, including public control.
Representatives from the tobacco industry, scientists, and government officials attended the meeting. The moderator was Andrei Loskutov, chairman of the Nicotine Alliance.
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