Deputy Prime Minister Alexander Khloponin instructed the Ministry of Finance, the Ministry of agriculture and other relevant agencies and experts “to discuss further the question of a system of control over production and turnover of tobacco products.” As the newspaper “Vedomosti”, is present in the text of the Protocol of the meeting with Deputy Prime Minister, held in late October.
In particular, we are talking about the feasibility of extending the application of the unified state system of the account of alcohol (EGAIS) for the manufacture and retail sale of tobacco products.
The issue of tightening control of the tobacco market raised again “because of the urgent need to engage in the completion of the budget,” explained an official in the government.
While the participants of the meeting only to discuss which system will be used for control of the market: already running USAIS or new. In addition, some experts don’t see the need in creating new systems, improving existing offering with no additional costs, he said. In what terms must be fulfilled the order, the document is not specified.
Control over the circulation of tobacco products is required and will be installed, said the representative Khloponin Natalia Platonova. According to her, before November 25, relevant departments must submit their proposals on how it will be done.
The representative of the Ministry of agriculture also reminds the high level of collection of excises and the low level of illegal tobacco products. In addition, possible disruptions in the system and, as a consequence, disruption of production and supply can lead to an increase in counterfeiting, he fears.
Industry representatives are not convinced of the need to modify the USAIS. Today, as recalled by the Director for corporate relations “BATH Russia” Alexander Ljutyj, according to Nielsen, the share of illegal tobacco products is only 2.2% of the market. Given the high collection of tobacco excise taxes distribution system EGAIS for tobacco products is impractical, the Vice-President of JTI in Russia, Sergey Kiselev.
According to the Federal Treasury in the first nine months of 2016, the budget was 358,3 billion rubles of tobacco excises (+23% year-on-year, the excise tax in 2016 has grown by 26%). While the share of illegal products on the alcohol market, according to official data more than 20%.
We will remind, a year ago for labelling of cigarettes, the officials offered to use the technology of “Mail of Russia”, which involves the application of RFID tags on each package of cigarettes. The cost of its operation can cost the industry a minimum of 7 billion rubles per year, which could lead to higher prices, warned then, experts and representatives of industry.
Tobacco companies earlier this year compared the system of “Mail of Russia” with USAIS (Unified state automated information system) operating in the alcohol market, and came to the conclusion that the proposed “Mail” system is redundant and “carries serious risks of disruption of the entire tobacco market”