Russia Implements Successful Product Labeling Program.

Dec.01.2022
Russia Implements Successful Product Labeling Program.
Russia closed 30 illegal tobacco producers and raised $1.4bn in consumer tax by implementing product labeling.

Recently, Artem Kiryanov, Vice Chairman of the Economic Policy Committee of the Russian State Duma, informed FAN that over 30 illegal tobacco producers have been shut down in Russia due to implemented labeling systems. Additionally, the consumption tax has increased by 121.5 billion rubles (approximately 14 billion yuan).


The legislator pointed out that introducing labels in 14 product categories did not lead to a significant increase in consumer costs. According to him, the fears expressed during the label introduction phase did not materialize.


Artem Kiryanov highlights the fact that the experience of labeling products has shown that counterfeit goods are becoming less and less prevalent.


A lawmaker noted that as a result of implementing labels, over 30 illegal tobacco production facilities were shut down in Russia, while an additional 18 legal production facilities emerged. He further added that he believes expanding the use of labels to new product groups is reasonable in this regard.


I have seen significant benefits from its implementation in the brewing industry. Due to the gray market, budgets receive billions of dollars each year. Another important area is caviar, where the illegal turnover is close to 30%. Caviar represents our country's image. There are also issues with children's drinking water," said the lawmaker.


Previously, the Ministry of Industry and Information Technology had proposed mandatory labeling for beer, including non-alcoholic and low-alcohol beverages.


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