The State Duma Committee approved an increase in excise tax on sweet soft drinks

The amendment was presented for second reading to the bill on amendments to the Tax Code.

State Secretary of the Committee, Deputy Head of the Ministry of Finance, Alexei Sazanov, said that it is proposed to exclude fortified drinks, as well as kvass, from drinks not subject to excise tax.

On July 1, 2023, an excise tax on sugary soft drinks of 7 rubles per 1 liter was introduced in Russia. You pay for soft drinks that contain sugar (glucose, fructose, sucrose, dextrose, maltose, lactose), sugar syrup or honey. This category includes all drinks with carbohydrates in their nutritional value greater than 5 g per 100 ml. The ethyl alcohol they contain should not exceed 1.2%.

In September, the Budget and Tax Commission submitted a bill amending the Tax Code to the State Duma. They proposed changing the criterion on the content of added sugars and carbohydrates for excisable beverages and reducing it from 5 to 2 g per 100 ml. The Ministry of Finance told RBC that this is done to reduce excessive consumption of sugary drinks and “stop manipulations related to the payment of excise taxes.”

Last week, Opora Rossii proposed to the Ministry of Finance to set a minimum retail price (MRP) for beer and beer-based beverages due to the increase in excise taxes. Otherwise, according to the business association, this could affect the quality of the products.

Subsequently, the Ministry of Finance supported the initiative to introduce MRP for beer. They reported that for this it is necessary to make changes to the EurAsEC agreements.