Russia Loses Billions in Tax Revenue from Illegal Tobacco Trade
According to the International News Agency, the Russian government incurred a loss of over 46 billion rubles (approximately 481.33 million USD) in tax revenue during the first half of 2023 due to illicit tobacco trade.
Vladislav Zaslavsky, the Director of the Commodity Digital Marking System at the Ministry of Industry and Trade of Russia, stated, "According to the latest study concluded this month, the proportion of illicit cigarette smuggling among smokers is 13.3%.
Zaslavsky announced on August 24th at a retail roundtable conference in the Volga River region, "According to the National Scientific Center for Combating Illegal Trafficking of Industrial Products (NNCC), it is estimated that the losses will amount to at least 46.5 billion rubles.
According to Zaslavsky, each percentage point of illegal cigarette smuggling costs the federal budget approximately 7 billion rubles in excise taxes.
The National Nuclear Control Center will conduct research on "nicotine-containing products" in the second half of 2023. As of the end of 2022, the market share of illegal nicotine-containing products stands at 79%, with illegally sold nicotine liquids accounting for 93% of this figure.
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Russia claims that substantial tax losses are being incurred due to the illicit trade.
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