Strengthening control over Russia's tobacco market will contribute up to 150 billion rubles to state budget - Siluanov

MOSCOW. April 2 (Interfax) - Recent measures enacted in Russia to strengthen control over the tobacco market could add 150 billion rubles to the budget, Russian Finance Minister Anton Siluanov said.

"Together, we estimated that the volume of funds mobilized from measures to control the tobacco market could reach about 150 billion rubles. This is a significant amount of a resource that we now need," Siluanov said at the annual meeting of alcohol and tobacco watchdog Rosalkogoltabakkontrol on Tuesday in Moscow.

There has been an increase in the illegal circulation of tobacco products in recent years. The share of these products on the market in 2021 was over 11%, while in 2023 it exceeded 13%, Siluanov said.

"Serious work remains to be done to regulate the tobacco market and increase its transparency. There is a lot to work on. I hope that the powers that your service has received will make it possible to restore order in this market, and, accordingly, ensure competition on the one hand, and guarantee the flow of resources and revenues to the budget on the other," the finance minister said.

Rosstat data show that tobacco companies produced 198 billion cigarettes in 2023, which is 10.7% less than the previous year.

Budget revenue from excise taxes on tobacco products is expected to total 824.152 billion rubles in 2024, the Tax Code says.

Rosalkogoltabakcontrol received the powers of state control over the production and circulation of tobacco and nicotine-containing products as of March 1, 2024. Previously, this was done via other control mechanisms.

The agency must identify and stop the illegal production and trafficking of tobacco and nicotine-containing products. In addition, it will monitor manufacturer compliance with licensing and mandatory requirements for production, supply, and the purchase and transportation of raw materials and finished products. Rosalkogoltabakcontrol specialists will have various tools at their disposal to prevent violations, including information, counseling, self-inspections, preventive visits, and measures to encourage conscientiousness.

Control (supervisory) activities include, but are not limited to, on-site supervision, on-site inspections, test purchases and inspection visits.