Russia approves higher taxes on e-cigarettes and tobacco products

According to a report from TASS, the Russian Federation Council has approved a law to increase the excise taxes for cigarettes and e-cigarette liquids.

Starting from March 1, 2023, Russia will impose an 11% consumption tax on electronic cigarette liquid, while not taxing the devices or cartridges themselves. Following the latest tax rate, as of March 1, there will be a tax of 20 rubles (roughly 1.95 yuan) per milliliter of liquid. By 2024, the tax on e-cigarette liquid could reach 21 rubles (roughly 2.05 yuan) per milliliter, while in 2025 it could be 22 rubles (roughly 2.15 yuan) per milliliter.

According to reports, the Russian Ministry of Finance had planned to impose a 94% consumption tax on tobacco products in November 2022 (click to read related article). However, this plan did not materialize.

2FIRSTS will provide detailed analysis and ongoing coverage of the latest electronic cigarette tax rates in Russia. Stay tuned for more information.

Reference(s):

The Federation Council has increased excise rates on tobacco products from March 1st.

Recommended readings:

Russia imposes taxes on tobacco products, including cigarettes, tobacco, and e-liquids. E-liquids are taxed at a rate of 17 rubles per milliliter.

The Russian Ministry of Finance has proposed a 33% increase in the HNB (heated tobacco products) consumption tax and a 94% increase in the tax on tobacco products.