Cigarette Prices Go Up in 2020 as Russian Authorities Aim to Curb Smoking

The Russian government has raised excise duties on cigarettes and other tobacco products from January 1, 2020, in an effort to limit the number of smokers in the country, Rossiyskaya Gazeta reports.

In particular, excise taxes on cigarettes and unfiltered cigarettes have climbed to $1,966 rubles ($31.80) per 1,000 items +14.5% of estimated cost calculated on the base of the maximum retail price, but not less than 2,671 rubles ($43.20) per 1,000 items.

Earlier, this excise duty was 1,890 rubles ($30.56) per 1,000 +14.5% of the estimated cost, calculated on the base of the maximum retail price, but not less than 2,568 rubles ($41.50) for 1,000 items.

That said, the excise duties on cigarillos, beedis (small Indian cigarettes), kretek (Indonesian cigarettes) have risen to 3,055 rubles ($49.45) per 1,000 items from 2,938 rubles ($47.51) per 1,000 items earlier.

Cigars have not escaped, since they have seen an increase from 207 rubles ($3.35) to 215 rubles ($3.48) per item. The excise on heated tobacco and heated tobacco products comes to 6,040 rubles ($97.67) per 1 kg up from 5,808 rubles ($94.03) per 1 kg.

Prices for some alcoholic beverages will also go up – the minimum retail price for vodka will increase from 215 to 230 rubles ($3.72) for 0.5 liters, for cognac – from 388 to 433 rubles ($7), for brandy – from 307 to 315 rubles ($5.73), Interfax reported.

The Union of Producers of Alcoholic Products of the Russian Federation previously proposed raising the minimum retail price for vodka in 2020 to 233 rubles per 0.5 liter. The organization referred to raising the excise tax from 523 to 540 rubles per liter of pure alcohol, rising wheat prices and a sharp rise in the cost of glass.