The Federal Service for Alcohol Market Regulation is planning to limit alcohol import to the territory of the RF – no more than 5 litre per capita. (2014-08-20)

The Federal Service for Alcohol Market Regulation of the RF prepared a regulatory legal act: the Federal Law “Concerning Amending of Law “On the State Regulation and Circulation of Alcohol and Alcohol-Containing Products and Limiting of Alcohol Consumption” and the Russian Federation Administrative Offence Code”.

This Draft Bill is focused on solving problems connected with import of large amount of cheap, unidentified alcohol products of Kazakhstan origin by individuals.

At present time we can mention the absence of coordinated excise policy in member states of the Customs Union: significant differences in excise rates lead to loss of income of the budget system of the RF, deterioration of the competitiveness of the local alcohol products and sharp reduction of its legality.

For example, the current excise rate for vodka is 500 rub. (10,3 Euro) per 1 litre, while in Kazakhstan this excise tax is 196 rub. (4 Euro). Taking into account rather cheap raw materials used for vodka production in the Republic of Kazakhstan, its price is by 2,5 times lower than the price for vodka of the local production. We have the same situation at the brewing market: beer excise rate in the countries of the Eurasian Economic Union is several times lower than in the RF.

Taking into account the extent of the problem the Federal Service for Alcohol Market Regulation is offering to limit import of alcohol (including beer) to 5 litres per capita from member states of the Customs Union by individuals.

Besides, it is planning to amend the Russian Federation Administrative Offence Code and to fix administrative responsibility for law violation.

You can find the draft bill by reference.

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