Proposal to Keep Tobacco Tax in Local Regions

Dec.26.2022
Proposal to Keep Tobacco Tax in Local Regions
Russian Senator proposes to keep part of tobacco taxes in local regions and establish a system to calculate tobacco sales.

Anatoly Aksakov, the chairman of the Budget and Financial Markets Committee of the Russian Federation Council, believes that some of the collected tobacco taxes should be kept in the regions.


A senator spoke in the news center of the parliament and suggested the need for a system to calculate the revenue from tobacco products. He mentioned having discussed this at a recent meeting of a working group in the federal committee, and proposed to set up control measures for tobacco products in the region similar to those for alcohol. The senator also suggested exploring ways to incentivize people, such as transferring a portion of tobacco consumption taxes to participants. He highlighted the relevance of this issue in relation to alcohol consumption today.


One effective measure to control the distribution of tobacco products is the introduction of navigation seals on the territory of the Eurasian Economic Union. Tobacco, alcohol, and many other goods will be tracked, potentially reducing the need for control measures and simplifying the flow and control of goods.


During the annual meeting with Valentina Matviyenko, the State Secretary - Vice President of the Federal Executive Branch and Chairperson of the Federal Council, the importance of redistributing tobacco consumption taxes was announced. "On the one hand, it will give more power to local regions and on the other hand, the active participation of regions in combating counterfeit products will also lead to an increase in legitimate tobacco consumption taxes," said V. Matviyenko.


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