22 Sep 2022 17:05

Russian govt plans to introduce excise tax on sugary drinks, expects to receive 25 bln rubles in 2023

MOSCOW. Sept 22 (Interfax) - The Russian government plans to introduce an excise tax on sugary beverages, and expects to receive 25 billion rubles in 2023 from the excise tax, according to the explanatory note to the draft budget that Interfax has seen.

The government plans to allocate the funds received in the budget "to finance measures to combat diabetes".

The government has been discussing the idea of an excise tax on sugary drinks for several years, having returned to the discussion in 2021. The Vedomosti publication reported that the government has instructed the respective departments to consider the issue of excise taxes on sugar-containing drinks. The Agriculture Ministry did not approve the idea at the time, as it was concerned about rising prices, decreasing production, a declining number of producers, and an emerging illegal market. The Union of Producers of Juice, Water and Drinks, which particularly includes the Russian structures of PepsiCo Inc. and Coca-Cola Co. , opposed the initiative, as did the Russian Union of Industrialists and Entrepreneurs (RSPP).