Alexander Mordovin took part in the Round Table “Decriminalization of the strong alcohol market” (2016-07-03)

The President of Barley, Malt, Hops and Beer Union took part in the Round Table “Decriminalization of the strong alcohol market” as an expert for grain supplies and alcohol production, organized in June 28, 2016 by the Federal Tax Service led by the Deputy Director D.V. Egorov.

Largest alcohol producers, Alcohol Producers’ Union, the Ministry of Internal Affairs, the Federal Security Service, Investigation Committee, the Russian Alcohol Regulation Service, the Federal Financial Monitoring Service and the General prosecutor’s Office took part in the meeting.

Largest pure alcohol producers 2015

Alexander Mordovin underlined the following facts in his report “Raw materials for production of strong alcohol”:

The key question to be discussed within the meeting is raw material production for the Russian alcohol industry and its distribution.

We have a lack of information about a move of grain materials from an agricultural producer to a producer. It refers to grain pricing, VAT, short-lived firms and all illegal alcohol produced of legal grain at the first stage.

By opinion of Unions, a special accreditation system for raw materials supplies shall be created, including a record of honest suppliers and introduction of minimum requirements to these suppliers (registered capital, experience, absence of debts) that will positively influence on the mentioned problem.    

The second important problem is introduction of a certain declaring system. For example, in Germany , the Ministry of Finance monitors all volumes, prices and supply agreements of alcohol producers, including a complex analysis of technological equipment data and compliance of declared volumes to consumption of agricultural and technical materials, energy, gas, water purchased package and even use of lubricants for filling lines.

We consider it is necessary to create a special declaring system as an addition to USAIS in order to monitor all volumes, prices and supply agreements of alcohol producers, including a complex analysis of technological equipment data and compliance of declared volumes to consumption of agricultural and technical materials, energy, purchased package etc.   

Alexander Mordovin also informed participants of the meeting about counterfeit brewing products and “pseudo-beer beverages”.

The Deputy Director of the Federal Tax Service D.V. Egorov noted that:

“Transparent rules of tax administration and cooperation in the strong alcohol market will provide equal competitive positions and budget revenues”. 

He underlined that thanks to cooperation with law enforcement authorities there are first positive results: it was managed to curtail tax avoidance schemes of some dishonest alcohol producers, so this “wave effect” would stimulate other producers to fulfill their obligation properly.