Beer is for nothing or Who Lives Well in Russia (2013-10-02)

Dear Russian independent brewers,

As you are well aware powers of the Federal Service for Alcohol Market Regulation in point of brewing companies control will be greatly broadened in the nearest time and this is just the beginning.

Beer is an alcohol product so in future the government will monitor the situation closely.

Even today, prepare for checking of production capacity figures, given to the Federal Alcohol Market Regulatory Service, equipment inspection etc. Please keep in mind PET topic, storage licensing and so on.

There are many questions in the brewing industry and its number will increase but perhaps nobody will answer them. The time of plant shutdown, institution of a criminal proceeding for tax default, uninformedness, personal foolishness and “hope for a miracle” is nearing.

Communicating with you at Drinktec it never failed to amaze me that several of you were not aware of the nearest future, were not well informed with coming changes in legislation, increasing of the excise rate to 30-35 rubles by 2020. It is rather surprising that several of you are planning to settle the issue of “survival”, not paying excises, developing shadow beer markets in the country. Do you really think that this question will be neglected by the State Government Bodies? May rest assured that the point of the shadow beer market has been already in process.

Here again I’m sure in approval of this question by transnational brewing companies.  They can’t be accused of tax default. By the way, what do you think of introducing retail prices for brewing products?

Letters from your anonymous “friends”, informing about tax investigation has already come to our Union. Please, look at the price-list in enclosure, simple calculations show that the price 67,95 rub for 2,5 litres of beer is theoretically impossible. So, one litre of beer costs 27,18 rub. and an excise duty for 1 litre of beer is 15 rub.(VAT excluded!). What remains in the final analysis – 12 rub, where 6-7 rub. for a bottle with a cap and a collar and where is beer? It must also be in the bottle.

What shall we do knowing all this? I personally think that we must inform the Federal Alcohol Market Regulatory Service about law violations after checking all facts.

So as to appraise the seriousness of the situation do you need plant shutdown and institution of a criminal proceeding for tax default?

Colleagues, “the danger isn’t over”. Free beer is only in “IPhone” and there is no such thing as a free lunch.

So, let’s not rely on a bit of luck. As an example Russian wine producers and government relations:

Do you know that wine makers are now agricultural producers and the Administration of Krasnodar Krai and the Federal Alcohol Market Regulatory Service made a road map for development of wine industry

The following topics are discussing by the Government:

– it is possible that wine and champagne will be advertised in mass media

– wine and champagne will probably be exempted from excise taxes (there will be a zero excise tax) according to the practice in German legislation).

All above mentioned will come true. A draft bill is in attachment.

There comes a time when we shall defend our interests in order to survive.

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