Russia may increase duties on imported wine - Deputy Finance Minister

MOSCOW. June 27 (Interfax) - Russia may increase import duties on wine.

Proposals of this type have been received, and they are being discussed by the commission on customs and tariff regulation under the Ministry of Economic Development, Deputy Finance Minister Alexei Sazanov said in an interview with Rossiyskaya Gazeta.

"The option of increasing duties is being considered [the current duty is 12.5%]. Whether they will be increased and by how much is still under discussion. A decision should be made in the next month or two," he said. What is important here is to develop a balanced solution that will not lead to a significant increase in prices for consumers. The parameters that are being discussed now, in our opinion, allow us to maintain price stability on the Russian wine market. In any case, if necessary, the Federal Antimonopoly Service will also join in the process and analyze the situation on the market."

All interested departments, including the Finance and Industry and Trade ministries, are in on the discussion, Sazanov said. At the same time, "a ban on imports is not on the table," he said.

Speaking about the planned experiment to sell Russian wine via the Russian Post Office, Sazanov said the final decision has not yet been made "how it will be done, and in what timeframe." The concept of the experiment itself and the draft law on online wine sales of are now being discussed at the State Duma. Many participants believe that the issue requires further study," he said. "At the same time, the proposals from parliamentarians sound different and contradict each other. Others, on the contrary, say that the experiment should be handled by other operators; not Russian Post.

It is impossible to take both points of view into account in one bill, he said. "But the discussion on each proposal is ongoing. It is possible they could decide not to conduct the experiment at all. But I still hope a compromise solution will be found," the deputy minister said.

Answering a question about the need to introduce excise taxes on sweetened carbonated beverages, Sazanov said, "it is a worldwide practice to impose excise on harmful products and give the funds to national needs, including financing the healthcare system. Manufacturers cannot get around it by adding harmful substitutes as there are technical regulations, such as GOSTs that must be observed. Mandatory labeling of sweetened drinks is also being introduced. All of this together should protect consumers from these risks," he said.

Russia's 7 ruble per liter excise tax on sugary drinks will come into force as of July 1, 2023.