Increasing of beer excise tax: shall we drop the curtain or not? (2015-11-17)

Despite last-ditch attempts of “Russian” Brewers’ Union to freeze beer excise taxes and involving of old fellows – the Ministry for Economic Development and the Federal Anti-Monopoly Service (it was a strange fact when the FAS interfered into the issues of the Ministry of Finance), excise rates have been increased on Friday , 13th of November 2015 according to the request of our Union directed to the Ministry of Finance in May 22, 2015 (refer to  http://barley-malt.ru/?p=13392&lang=en.

May 22, 2015                                                                      

to the Deputy Chairman of the        

Government of the RF A.G. Khloponin

Beer excise tax for 2016-2018

Dear Alexander Gennadyevich!

Barley, Malt, Hops & Beer Union is the largest brewing Union uniting over 300 companies – representatives of the production chain “malting barley – beer”: plant breeders and seed growers, producers of barley, wheat, rye, hop and malt and also regional independent brewing producers, leading scientific and research institutes (more detailed information is in enclosure). 

In order to bring excise rates for alcohol more in line and level out alcohol content (excise rates for alcohol degree shall be drawn nearer in different segments), we consider necessary to fix:

  • 2016/ excise rate 20 rub.
  • 2017/ excise rate 21 rub.
  • 2018/ excise rate 22 rub.

You can find a full version of the letter here:

The Government of the RF

The Ministry of Finance of the RF

As a result, our position was supported by the Ministry of Finance and the State Duma of the RF approved amendments of the RF Budget Code in the second and third reading.

We didn’t support an idea of excise freezing due to its inexpediency, as most of brewing products have nothing to do with classical technologies and natural raw material.

So, excise rates for beer – 20 and 21 rubles for 2016 and 2017 are approved and it cannot be changed. And what about 2018? There are some variants. No doubt, it will be increased and our wish to increase it only for products made of malt substitution and in PET.

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