Russia Plans to Increase Tobacco Tax Rates by 2025

Regulations by 2FIRSTS.ai
Jul.04.2024
Russia Plans to Increase Tobacco Tax Rates by 2025
Russia plans to raise tobacco taxes by 4.7% in 2025, according to a second reading of the tax reform bill.

According to a report by TASS on July 3rd, the text of the second reading amendment to the Russian tax reform bill shows a plan to increase tobacco taxes by an average of 4.7% in 2025.


According to the amendment, the tax rates for cigarettes and cigars in 2025 are planned to increase to 2945 rubles per thousand (33.28 US dollars) plus 16% of the cost (not less than 4000 rubles [45.20 US dollars] per thousand), in 2026 to 3063 rubles (34.61 US dollars) plus 16% (not less than 4160 rubles [47 US dollars] per thousand), and in 2027 to 3186 rubles (36 US dollars) plus 16% (not less than 4326 rubles [48.88 US dollars] per thousand).


In addition, the plan is to increase the tobacco tax to 9,807 rubles per kilogram ($110.81) in 2025, potentially to 10,199 rubles ($115.24) in 2026, and to 10,607 rubles ($119.85) in 2027.


In addition, there are plans to increase the tax rate on e-cigarette liquid to 44 rubles (0.5 US dollars) per milliliter by 2025, 46 rubles (0.52 US dollars) by 2026, and 48 rubles (0.54 US dollars) by 2027.


The consumption tax is an indirect tax on domestic goods and services.


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