In 2017 the Russians waiting for the new higher prices of cigarettes. The pack can grow by 10-20 rubles, the newspaper “Izvestia” with reference to Director for corporate relations of the tobacco company “BAT Russia” (brands Dunhill, Kent, Pall Mall) Alexander Fierce.
“The average price of a pack only account of excise duty will increase by approximately 13% to 102 rubles. Moreover, the taxes have more than half the cost of a pack of about 60 rubles will be the excise duty and VAT,” explained Savage.
In the low price segment, the average price of a pack of cigarettes will reach 96 rubles, in the middle segment – 107 rubles, and in the premium – 122 rubles, said the expert.
Alexander Fierce also noted that producers will have to raise selling prices in response not only to the increase of excise rates, but also on the natural growth of other costs. This, for example, inflation or exchange rate factors are less predictable, to estimate influence which is not so easy.
The newspaper also recalls that the Ministry of Finance has announced plans to annually increase the excise tax on tobacco products in the next three years. This measure could bring the budget 243 billion rubles.
The minimum rate of excise duty for the next year already was expected to grow from 1680 to 1930 rubles per 1 thousand cigarettes, and after it became known about the new indexing, this amount should be increased to 2123 roubles for 1 thousand cigarettes. Minimum excise tax for a pack of cigarettes in next year, therefore, will grow from 38.6 to 42.5 rubles.