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View allAlternative tobacco and nicotine products in Russia
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7th September 2023
Russia / Belarus: British American Tobacco (BAT) has announced that it has now formally entered into an agreement to sell its Russian and Belarusian businesses in compliance with local and international laws. According to the announcement, the buyer is a consortium led by members of BAT Russia’s management team which will wholly own both businesses. BAT highlighted that the transaction will be completed within the next month, and that the company will no longer have a presence in Russia or Belarus and will receive no financial gain from ongoing sales in these markets. The company first announced its intention to transfer the businesses in March 2022.6th September 2023
- Russia: The Ministry of Industry and Trade has supported the proposal to clarify the rules for the sale of nicotine-containing products in pavilions (small free-standing buildings), media reports. The proposal was made by the non-governmental organisation of small and medium-sized businesses Opora Russia. According to the ministry representative, this would eliminate discrepancies in the definition of a “pavilion”, where the federal law allows the sale of such products. A pavilion is a structure that has a trading floor and is designed for one or several workplaces, as per Federal law No. 15.
5th September 2023
- Russia: The Ministry of Finance has introduced a proposal that would require tobacco and nicotine-containing products, including heated tobacco consumables, to be marked with digital tax stamps. The proposal is expected to be considered by the government and the provision to come into force on 1st March 2024.
16th August 2023
- Russia: The government has drafted a bill that would establish a procedure for determining the minimum selling price of heated tobacco consumables. According to the proposal, the formula of calculation is: Minimum price = excise duty rate per unit of mass or volume × (1 + VAT rate) × increasing coefficient. The increasing coefficient reflects the cost of production or the cost of procurement by the importer, as well as the cost of logistics and infrastructure maintenance. The coefficient is individual to each product. The bill has been sent to the Ministry of Finance for consideration, and if approved it will enter into force on 1st September 2023.
9th August 2023
Russia: Decree 587 has been signed by president Vladimir Putin, giving the Federal Service for Alcohol Market Regulation (Rosalkogolregulirovanie) oversight over tobacco- and nicotine-containing products. The decree will come into force on 1st September, when the government will have six months to clarify the new functions of the regulatory body.
7th August 2023
- Russia: Bill No 423 has been signed into law by president Vladimir Putin. It establishes administrative responsibility for the circulation of tobacco- and nicotine-containing products without a licence. Officials who violate the law could face an administrative fine of between RUB150,000 (€1,415) and RUB300,000 (€2,825) or disqualification for a period of two to three years with confiscation of manufactured products. Legal entities are subject to a fine of between RUB300,000 (€2,825) and RUB1m (€9,420). The law comes into force on 1st April 2024.
3rd August 2023
Russia: A series of increases in excise taxes on tobacco products have been approved by the Federation Council and signed into law by president Vladimir Putin. The rate for heated tobacco consumables is set at RUB9,094 (€90) per kg in 2024, rising to RUB9,458 (€94) per kg in 2025, and to RUB9,836 (€97) per kg in 2026. Chewing tobacco will be taxed at a rate of RUB4,318 (€43) per kg in 2024, RUB4,491 (€44) per kg in 2025, and RUB4,671 (€46) per kg in 2026.
24th July 2023
- Russia: Bill 369931-8 has passed the State Duma (lower chamber of parliament) and heads to the Federal Assembly for consideration. The bill would amend the Tax Code and would increase the current tax rates starting next year. The rate for heated tobacco consumables would increase to RUB9,094 (€90) per kg in 2024, to RUB9,458 (€94) per kg in 2025, and to RUB9,836 (€97) in 2026. Chewing tobacco would be taxed at a rate of RUB4,318 (€43) per kg in 2024, RUB4,491 (€44) per kg in 2025, and RUB4,671 (€46) in 2026.
14th July 2023
- Russia: Starting 1st September 2023, an electronic register of licences for the production and circulation of tobacco and nicotine-containing products will begin to operate in Russia, as stipulated in Government decree of 12th July No.1138. The register will contain information about issued, suspended and revoked licences, meaning regulatory authorities will be able to quickly check the status of licences.
15th June 2023
- Russia: Bill No. 310882-8 on the state regulation of production and circulation of tobacco- and nicotine-containing products has been signed by the president. The bill introduces, among other things, state licensing of production and storage, and import and export of tobacco- and nicotine-containing products, including raw materials. The provisions come into force on 1st September 2023.
8th June 2023
- Russia: Bill 310882-8 on the state regulation of production and circulation of tobacco and nicotine-containing products is awaiting president Vladimir Putin’s signature after being passed by the Federal Assembly. State licensing of the production, storage, import and export of tobacco and nicotine-containing products, including raw materials, will become mandatory from 1st September.
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