66% of the website visitors voted for introduction of the minimum retail price for beer. When will it happen? (2014-03-24)

According to the confirmed information of our Union, the Russian Government is introducing minimal retail prices for alcohol products. Earlier the minimum retail price was fixed for products with alcohol content over 40% but recently the price was fixed to drinks with alcohol content over 28% and now – a new stage, the minimum retail price is planning to be fixed for champagne.

Authorized bodies prepared the Draft Decree “On Acts Amendments Concerning Price Regulations for Alcohol and Alcohol-Containing Products” in accordance with decisions rendered within the meeting of the First Deputy  of the Chief of the Government Staff of the Russian Federation Akimov M.A. in August 12, 2013 (point 2 of the report № МА-P11-35pr)including the question about lowest prices for champagne. All these problems were discussed in order to implement point 2 of the report of the Vice-Chairman of the Government of the RF Dvorkovich A.V. dd. 27.08.2013 No АD-P11-6104.

According to the mentioned decisions, corresponding amendments of the Russian legislation were accounted as useful.

You can find the bill here.

The Article 5 of the Federal Law dd. 22.11.1995 No 171 ”Concerning the Government Regulation of the Production and Circulation of Alcohol and Alcohol-Containing Products and limitation of alcohol consumption” (hereinafter referred as the Federal Law) confirmed powers of the government authorities in the matter of production and circulation of alcohol and alcohol-containing products in order to regulate prices for alcohol and alcohol-containing products.

In addition, according to the provisions of the Federal Law establishing special requirements to production and circulation of alcohol and alcohol-containing products, purchase (excluding import), supplies (excluding export) of alcohol, alcohol products and retail sale of alcohol production shall be made in accordance with prices not lower than fixed by executive authorities.

Besides, according to the points 5.2.4 and 5.2.5 of the Regulations of the Federal Service for Alcohol Market Regulation approved by the Government Decree No154 dd. 24.02.2009, powers for adoption of acts fixed prices not lower than for purchase (excluding import), supply (excluding export) of alcohol, alcohol products and retail sale of alcohol products, are conferred to the Federal Service for Alcohol Market Regulation.

Moreover, according to the Register, items for the state price regulation concerning alcohol and alcohol products are only alcohol made of food raw materials produced in the territory of the RF and also vodka, liqueurs and spirits with alcohol content over 28% produced in the territory of the RF or imported to the customs area of the RF.

It should be noted that mentioned provisions were included in the Register in 1996 when legal reasons for alcohol price regulation were absent and corresponded to the existing price formation.

According to the current legislation of the RF concerning production and circulation of alcohol and alcohol-containing products, fiscal and budget legislation, the gradation “products with alcohol content over 28%” is not used for a long time.

Besides, in 1996 the purpose for alcohol price regulation was the replenishment of the federal budget and a constituent entity of the Russian Federation and at present – limitation of illegal alcohol products (as a rule by using cheap and poor quality raw materials).

So, at the present time, amendments of sixteenth and seventeenth abstracts of the Register don’t conform to the current legislation and misrepresent similar norms fixed by the Federal Law.

And what will be with beer?

We reviewed a question about the minimum retail price for beer in detail in one of our analytical articles (http://barley-malt.ru/?p=8795&lang=en).

Meanwhile, according to the decisions taken at the meeting of the Vice-Chairman of the Government of the RF Dvorkovich A.V. (point 2 dd. 21.01.2014 No АD-P11-5pr), introduction of minimum retail prices for beer and beverages like beer, cider, poire and mead products is pointless. The corresponding exceptions are included in the new version of the Register and also in the Regulations for the Federal Service for Alcohol Market Regulation approved by the Decree of the Government of the Russian Federation dd.24.02.2009 № 154 (insofar as it refers to minimum prices).

In accordance with our information some deputies are preparing appeal to the Government of the Russian Federation concerning necessity for introduction of minimum retail prices for brewing products. Voting results of the participants of our website are as follows: over 66% – for minimum retail prices and some visitors vote for the lowest retail prices at the level 45-50 rubles. All results will be given to the State Duma.

What is your opinion?

Minimum retail price level for beer 35-40 rub/0,5l.

This introduction will give impulse to the development of the Russian brewing business where beer production costs are higher (61%, 521 Votes)

Minimum retail price is another pressure mechanism on the industry: the lower price, the higher level of purchases (37%, 316 Votes)

Minimum retail price must be not less than 45-50 rub (2%, 23 Votes)

Total voices: 860

 

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