State Duma deputies in the third, final, reading adopted a bill on the introduction of an excise tax on non-alcoholic sweet drinks on November 10. About it reported website of the lower house of parliament.
What tax are you talking about? According to the new bill, from July 2023, an excise tax of 7 rubles will be imposed on a liter of a sweet drink that contains more than 5 grams of sugar per 100 milliliters. The government expects that this will increase the state budget by 35 billion rubles a year. In addition, the excise money that will be paid by manufacturers of sugary drinks will be used to finance the fight against diabetes, follows from the text of the bill.
The idea of introducing a tax on soft drinks discussed back in 2016. Then it was supported by the Ministry of Health, calling the excise tax an effective economic tool to combat obesity and diabetes. However, the Cabinet of Ministers abandoned the initiative, as it could hit domestic producers of sugary drinks.
government again returned to the idea of a tax in June 2021. Later, in the spring of 2022, the Ministry of Finance planned to discuss the initiative with Coca-Cola HBC and PepsiCo. wrote “Kommersant”. At the same time, the Ministry of Agriculture of the idea of an excise tax did not approve due to fears that it will lead to higher prices and lower consumption of soft drinks.
Will the tax help fight disease? Maxim Novikov, president of the Soyuznapitki association, in a conversation with Delovoy Peterburg declaredthat manufacturers opposed the initiative. According to market participants, the tax will only harm the industry.
Novikov also referred to the report of the Higher School of Economics and the analytical center under the government. According to the document, Russians do not get most of their sugar from soda. Therefore, the excise tax will not help in the fight against obesity, diabetes and cardiovascular disease.
A similar tax was introduced in more than 50 countries, including the UK, Mexico and some US states, Business Petersburg notes. In most states, after the adoption of the excise tax, the spread of obesity continued, and the employment of the population decreased due to the economic impact on the market.
How the tax will affect the Russian lemonade industry. After the adoption of the draft law on excise duty, the non-alcoholic beverage company Chernogolovka froze investments in Russia for 5 billion rubles. About it reported at RBC.
Due to the reduction in investment, Chernogolovka will not be able to open vacancies for a thousand new jobs. In addition, the company canceled the construction of factories due to the “economic uncertainty” created by the new tax.
The production of sweet drinks in 2023–2025 will fall by a “critical” 20%, representatives of Chernogolovka believe. According to them, the excise “will inevitably raise prices” and lead to an increase in imports of lemonade from countries EAEU.
What you need to know. After the start of the war in Ukraine, Coca-Cola HBC and PepsiCo stopped produce drinks in Russia under their own international brands. By data RBC, their drinks accounted for most of the lemonade market in the country.
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