Business asked the government to freeze the excise tax on alcohol for three years

The Russian Union of Industrialists and Entrepreneurs (RSPP) appealed to the government and the Ministry of Finance with a request to freeze the excise tax on alcohol. The corresponding letter (available to RBC) was sent by RSPP President Alexander Shokhin to Deputy Prime Minister Dmitry Grigorenko and Finance Minister Anton Siluanov. The authenticity of the letter was confirmed to RBC by a source in the alcohol market.

In his address, Shokhin recalled that the government is discussing the concept of fine-tuning the tax system, which provides for the mobilization of additional sources of deductions to the budget. One of the options, as noted by the head of the RSPP, is to change the system for paying excises and increase excise taxes on alcoholic products in excess of the indexation that is enshrined in law.

“In this regard, the members of the Russian Union of Industrialists and Entrepreneurs are the largest producers of alcoholic beverages, incl. the largest taxpayers in the regions of presence are asking you to maintain the excise rates on alcohol approved by the President of the Russian Federation in 2022-2024, and also to consider the possibility of freezing the excise tax in the future for three years,” the letter says.

Shokhin noted that taking into account the unpredictability of the economic situation associated with the COVID-19 coronavirus pandemic , business asks to maintain the previously adopted approach until 2024 inclusive and not to increase excise taxes on alcoholic products in excess of the one established today in the Tax Code. “This will enable alcohol producers to maintain production facilities and jobs in the current difficult conditions, ensure the payment of wages and the implementation of measures to prevent the spread of coronavirus at enterprises, as well as continue the proper fulfillment of tax obligations,” the head of the RSPP explained.