Russia Implements Tax Hike on Tobacco Alternatives starting 2024

Aug.29.2024
Russia Implements Tax Hike on Tobacco Alternatives starting 2024
Russia to significantly increase prices of tobacco substitutes starting September 1, 2024, causing prices to soar.

According to a report from Bst.Bratsk on August 28th, starting on September 1, 2024, Russia will significantly increase the prices of tobacco alternatives.


The Russian government will regulate the minimum prices of e-cigarettes, pods, hookah mixtures (including those without tobacco), and e-cigarette liquids, leading to significant price increases. Some consumable prices are expected to rise four to five times their current levels.


Russia is set to implement new requirements for the sale of tobacco products, establishing minimum retail prices for such goods. Market participants have referred to these new measures as a "prohibitive consumption tax." These measures are likely to significantly reduce the popularity of "alternative" smoking and force many Russians to revert to smoking traditional cigarettes.


It has been reported that businesses must adjust their product prices by the end of August to comply with the new regulations, which set a price floor based on Decree No. 301 of March 14, 2024. However, due to legal loopholes, they will need to adjust prices twice - the lower MRPs that will come into effect on September 7 have been confirmed in Russian Federal Government Decree No. 1050, issued on August 5, 2024. During this week, the temporary MRPs will be significantly higher (for example, the temporary MRP for a 30ml e-cigarette nicotine e-liquid will be 2130 rubles (approximately $23), but from September 8, this price will drop to 1800 rubles (about $20)).


The new regulations will apply to all nicotine-containing products, including bottled e-liquid, prefilled cartridges, and disposable e-cigarettes.


According to Article 7, paragraph 6 of Federal Law No. 203-FZ dated June 13, 2023, the government will calculate the minimum prices of these products based on a formula that includes the consumption tax rate, value-added tax rate, and uplift coefficient.


Although Order No. 1050 slightly eased the burden, expenditures on nicotine products are still expected to skyrocket. For example, the minimum retail price (MRP) of e-cigarettee-liquid (with and without nicotine) will reach 60 rubles per milliliter (about 0.6 USD), with a standard 30 milliliter bottle of e-liquid priced at 1800 rubles (around 20 USD). This is nearly five times the current price, which is around 500 rubles (about 5 USD) according to data from the "Honesty Mark" system. Roughly speaking, the cost of consuming 120 milliliters (4 bottles of 30 milliliters) of e-cigarettee-liquid per month currently amounts to about 2000 rubles (around 22 USD). Starting from September 7th, the same e-liquid will cost 9504 rubles (around 104 USD) (MRP of 1800 rubles [around 20 USD]/30 milliliters + distributor standard markup of 10% + retailer markup of 20%, totaling 2376 rubles [about 26 USD]).


Pre-filled cartridges or capsules containing e-liquid will cost 76 rubles (0.8 US dollars) per milliliter, with a price of 228 rubles (2.5 US dollars) for each three milliliter cartridge. The price for e-liquid in disposable nicotine systems starts at a minimum of 101 rubles (1.1 US dollars) per milliliter (14 milliliters in a 10,000 puff mode costs 1414 rubles or 15 US dollars).


In 2024, the consumption tax on e-cigarette liquid (containing 0.1 milligrams/ml of nicotine or more) is set at 21 rubles (0.23 USD) per milliliter, increasing to 22 rubles (0.24 USD) in 2025. The tobacco consumption tax for heated consumption is established at 9016 rubles (99 USD) per kilogram in 2024, rising to 9377 rubles (102 USD) in 2025.


In late April of this year, the Russian State Duma discussed a proposal to completely ban the sale of e-cigarettes in Russia. By the end of May, the State Duma and the Russian government announced plans to strengthen restrictions on nicotine products, including increasing fines for smoking in non-smoking areas and imposing fines of up to 7,000 rubles (77 USD) on parents of minors under the age of 16 who smoke.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Delaware Tax Proposal Targets Vapes, Nicotine Pouches and Other Tobacco Products
Delaware Tax Proposal Targets Vapes, Nicotine Pouches and Other Tobacco Products
Delaware’s latest tobacco tax increase bill cleared its first House committee hurdle on April 22. Backed by House Speaker Melissa Minor-Brown, the bill would raise the cigarette tax from $2.10 to $3.60 per pack and increase taxes on moist snuff, vapor products and other tobacco products.
Apr.24 by 2FIRSTS.ai
From Brands to Supply Chains: 2Firsts Builds a PMTA Compliance Service System for the U.S. Market
From Brands to Supply Chains: 2Firsts Builds a PMTA Compliance Service System for the U.S. Market
2Firsts supports new tobacco and nicotine companies entering the U.S. market with full-chain PMTA compliance services.
Jun.04
Philip Morris International Announces IQOS and Devialet Collaboration at Milan Design Week 2026
Philip Morris International Announces IQOS and Devialet Collaboration at Milan Design Week 2026
Philip Morris International announced on April 20 that IQOS has partnered with French acoustic engineering company Devialet to launch “Soundsorial Design” at Milan Design Week 2026. The collaboration includes an immersive exhibition and a limited-edition product set named “Soundsorial.” The exhibition will run from April 20 to April 27 at Opificio 31 in Milan.
Apr.22 by 2FIRSTS.ai
Opinion | As EU Reviews Tobacco Rules, Experts Warn Against Overlooking Smokers’ Alternatives
Opinion | As EU Reviews Tobacco Rules, Experts Warn Against Overlooking Smokers’ Alternatives
As the European Commission reviews its tobacco and advertising rules, two experts who provided written comments to 2Firsts argue that future EU policy should not overlook adult smokers’ alternatives. Dr Garrett McGovern and Dr Carmen Escrig say regulators should weigh relative risk, adult switching, flavours, consumer behaviour and scientific uncertainty alongside youth protection.
Industry Insight
Jun.01
French Anti-Tobacco Group Contre-Feu Calls for Plain Packaging Across All Vaping Products
French Anti-Tobacco Group Contre-Feu Calls for Plain Packaging Across All Vaping Products
French anti-tobacco group Contre-Feu said in a statement released on April 14 that e-cigarette manufacturers are encouraging nicotine dependence among young people through targeted marketing and called for concrete measures to protect minors. The group asked for plain packaging for all vaping products, strict regulation of flavor names, and a ban on online sales.
Apr.15 by 2FIRSTS.ai
Nicotine Beyond Tobacco? Cell Study Signals Emerging Shift in Production Systems
Nicotine Beyond Tobacco? Cell Study Signals Emerging Shift in Production Systems
Researchers at the Chinese Academy of Sciences reconstructed nicotine biosynthesis in non-tobacco plants and yeast systems, highlighting how advances in synthetic biology could gradually reshape future nicotine production technologies and challenge regulatory frameworks built around tobacco-derived definitions.
Special Report
May.07