The Meeting in the Economic Development Ministry: supporting of small and medium independent brewing business in the Russian Federation. (2014-04-22)

The meeting of the State Secretary, the Deputy Minister of Economic Development Fomichev Oleg Vladislavovich and the President of Barley, Malt, Hops & Beer Union Mordovin Alexander Nikolayevich took place in April 21, 2014.

Major questions concerning brewing industry have been discussed and prospect estimates for small and medium brewing business has been voiced during the meeting.

Within the meeting the problems of the possible introduction of the differentiated excise tax has been touched upon. It will be better for independent brewing companies to pay a share of the standard excise tax on the model of the differentiated system of European companies with annual output up to 5.000.000 dL. (this system is effective in 19 of 28 European countries).

For example, German companies with annual output up to 2.000.000 dL. pay 56% – 84% of the excise tax rate.

Parties have discussed not only differentiation based on annual output but on malt content in beer. Also, they raised a question of the renewal of hop production in Russia and implementation of the “Beijing Program” – malting barley export to the countries of the Shanghai Cooperation Organization. We’d like to note that the Passport of the Program was approved by the Minister for Economic Development A.V. Ulyukaev.

The problem of danger araising in case of the significant difference of beer excise rates in the countries of the Eurasian Commission (Russia, Belarus, Kazakhstan) has also been discussed.

A.N. Mordovin informed participants of the meeting about results of the business trip to the Republic of Belarus and Kazakhstan: a massive growth of brewing products produced in the mentioned Republics.

At the end of the meeting O.V. Fomichev made a point of the necessity to support small and medium brewing business and announced willingness for cooperation of the Ministry for Economic Development and Barley, Malt, Hops & Beer Union.

Фомичёв

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