Lowering Excise Taxes on Electronic Devices and Liquids: The Best Solution for the State and Market

2023-09-30 17:37:00

The best solution for the state and for the market would be to lower excise taxes on electronic devices and liquids to the level of excise taxes on cigarettes. In this case, federal budget revenues will increase by 10 billion rubles. This is the opinion expressed by lawyers and economists at the Higher School of Economics in their study.

“The federal budget can annually receive regarding 10 billion rubles from excise taxes on ENDS liquids produced here. Now – data for 2022 – excise tax collections in this category amounted to only 0.6% of this amount,” the economists’ calculations say, Komsomolskaya Pravda reports. The newspaper reports that next year they plan to double the excise tax on liquids. In this case, legal businesses will not be able to withstand competition with the black market, according to a study by scientists from the Higher School of Economics.

In this scenario, the share of gray imports of vapes and liquids in the country will increase multiple times, therefore, the budget will lose a significant portion of taxes. And buyers will receive goods without any quality guarantees.

In 2022, the State Duma Committee on Budget and Taxes approved introduction of excise taxes on electronic nicotine delivery systems – electronic cigarettes and vapes, as well as devices for heating tobacco. In January 2023, Russian President Vladimir Putin signed a law that increases excise taxes for cigarettes, heated tobacco, and e-liquids. At the same time, the tax on the devices themselves is removed.

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