The Deputy of the state Duma: increase excise taxes on alcohol will lead to the growth of the black market

© RIA Novosti / Michael Microchimeric in fotobounce supermarket in the alcohol Department. Archival photoThe Deputy of the state Duma: increase excise taxes on alcohol will lead to the growth of the black market© RIA Novosti / Michael Microchimeric the image Bank

The increase of excises on alcohol more than 9% in the Russian Federation can lead to the growth of the shadow market of such products and it hurts to hit the wallets of citizens, told RIA Novosti the first Deputy Chairman of the Duma Committee on budget and taxes Alexander Remezkov.

The newspaper «Izvestia» reported on Monday that the Ministry of health of Russia sent to the Ministry of Finance proposals to increase excise on alcohol with an alcohol content over 9%, the Ministry of health believe that the optimal price of a bottle of vodka should be more than 300 rubles. However, the Finance Ministry has told RIA Novosti that the increase in the minimum retail price (MRP) of vodka to 300 rubles per 0.5 liter will increase the illegal trafficking of these products in Russia.

«It is wrong to raise these excise taxes. Even though it was the alcohol, but the increase in excise duties will hit the wallets of our citizens, as it will increase the cost of the final product. Wallets these today fewer and fewer have the resilience to market purchasing power drops significantly,» — said the Deputy.

«As you know, if people want to smoke and it is his attachment, he will break the cake to find a potion in their pocket. … Also with alcohol: the one who drink will still drink,» — said the first Deputy Chairman of the Duma Committee. And if money on alcohol will not suffice, we will begin an active search for places where to get it cheaper. «As a result, will begin saadeldin, moonshine» — allows Remezkov.

«If you index the excise taxes significantly and simultaneously, it can give a powerful impetus to increase the supply in the black market. And this, in turn, can lead to an increase in the number of substandard alcohol poisoning and a fall in collections of excise taxes,» he said.

Speaking of minimum price of a bottle of vodka, he noticed that here it is necessary «to calculate, to feel» what the maximum allowable retail price of the population is able to afford with his income. «Of course, alcohol, like tobacco, is harmful, evil, and so on, but it is necessary to take into account the purchasing power of the population,» — says Remezkov.

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