Pack of cigarettes in Russia to bite smokers by 2020
Cigarettes can turn into even more expensive product in Russia and it will be more difficult to buy tobacco products, the Russian Ministry of Health alerts.
The World Health Organization (WHO) suggests Russia to increase the excise tax on tobacco products more than 5 times, precisely seven times. As outlined by the WHO demands, the standard price for a cigarette pack will be 238 rubles ($7.5) by 2020. Present prices vary from 30 to 80 rubles per pack ($1-3).
Not only regular smokers, but also the Ministry of Finance did not approve the step. The ministry offers to reduce the growth of excise duties after 2016. The math is simple.
One cannot permit a greater gap in retail prices on tobacco products with companions in the Customs Union. As outlined by the Ministry of Finance, such measures will result in the stream of contraband from nearby countries. Agreements on these issues between participants of the Customs Union already occur, and before 2016, the growth rate of excise taxes shall not surpass 25%.
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