Sep 17, 2020
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Tobacco companies have calculated how much cigarettes will rise in price

Due to the fact that the excise tax on cigarettes has increased by 20%, the cost of a pack of cigarettes will increase by an average of 20 rubles. This is what tobacco manufacturers say.

Now, on average, a pack of tobacco products costs 120 rubles. After the increase in the excise tax, the growth will be about 17%. This is the opinion of Oleg Barvin, the head of BAT Russia, which is the Russian structure of British American Tobacco, for relations with government agencies.

An increase in excise rates by 20% in 2021 will entail an increase in retail prices on average of at least 20 rubles per pack, - leads his words to RIA Novosti.

Vasily Gruzdev, director for work with government bodies at JTI Russia, noted that excise tax is the main factor in the price of cigarettes. From 2010 to 2020, he recalled, the minimum rate on cigarettes in Russia increased more than 10 times.

At the same time, a pack of cigarettes has risen in price by five times - from 25 rubles to 120 this year. The accumulated inflation in the country for this period was only 89%.

A 20% increase in excise rates in 2021 will lead to a significant increase in the weighted average price of a pack of cigarettes for consumers - up to 140 rubles- said Gruzdev.

At a government meeting, Prime Minister Mikhail Mishustin announced the proposal of the Cabinet of Ministers to index the rates of excise taxes on tobacco products stronger than inflation. Finance Minister Anton Siluanov on Wednesday confirmed information about an increase in excise tax by 20% with a simultaneous improvement in administration. According to the amendments to the Tax Code, in 2021 the rate on cigarettes will grow by 20% instead of 4% growth based on the current version of the Tax Code.

As wrote, economist and financial analyst Vitaly Kalugin believes that following the increase in excise duty on tobacco products in Russia, taxes on gasoline and alcoholic beverages will increase.

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