Rising Tobacco and Alcohol Prices in Belarus

Feb.27.2023

Rising Tobacco and Alcohol Prices in Belarus

Belarus raises tobacco and alcohol taxes, leading to price increases and plans to align with Russian rates by 2028.

On February 26th, according to reports from Belarusian media, the average price of tobacco products in January increased by 14.2% compared to December 2022 due to an increase in consumption tax on January 1st of this year. The price of vodka also rose by 4.7%.

According to the agreement on indirect taxes between Belarus and Russia, Belarus will increase its excise tax rates on cigarettes and alcohol for the next three years.

As per the plan, the tax rate for the second category of cigarettes will be aligned with Russia's consumption tax rate in October this year.

By the end of this year, the tax rate for the first category of cigarettes will be approximately 35% lower than that of Russia, and by the end of 2024, it will decrease by about 25%. According to the regulations outlined in this document, the tax rate will balance with Russia by 2028.

Starting from March 1st, Tabak-Invest company will increase the prices of many cigarette brands. For example, Camel Blue and Camel Yellow will rise by 30 kopecks to reach 4.65 Russian rubles (approximately 12.8 Chinese yuan), Winston Classic and Winston Blue will also increase by 30 kopecks to reach 5.5 Russian rubles (approximately 15.5 Chinese yuan), and Winston XS Purple Mix will increase by 25 kopecks to reach 5.25 Russian rubles (approximately 14.5 Chinese yuan).

Reference(s):

At the beginning of this year, prices for cigarettes and vodka skyrocketed. Walmart explained how this is related to the closer ties with Russia.

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