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The Ministry of Finance will sharply increase excise tax on sweet soda and kvass: how the price of drinks will change and when it will happen
Russia plans to raise taxes on consumption of sweet carbonated drinks from the new year. Manufacturers will pay a tax of 10 rubles per liter of product instead of 7 rubles. In addition, in the draft amendments to the second part of the Tax Code, developed by the Ministry of Finance, excise tax will be applied to kvass as follows: Why such measures are being introduced and how this affects prices is indicated in our material.
In mid-2023, Russia introduced an excise tax on carbonated drinks containing a certain amount of sugar. Currently, it is paid by producers of soft drinks (up to 1.2% ethyl alcohol) containing sugar (glucose, fructose, sucrose, dextrose, maltose, lactose), sugar syrup or honey. If the amount of carbohydrates exceeds 5 g per 100 ml, then 7 rubles per liter will be transferred to the state treasury.
To further reduce sugar consumption by citizens, the State Duma proposed lowering the excise tax threshold to 2 grams per 100 ml. But the Treasury discovered that producers were deliberately understating the amount of sugar in their drinks to avoid paying taxes.
Now the Ministry of Finance plans to combat high sugar content in a different way. The new version of the amendments does not increase the requirements for sugar, but increases the excise tax itself. According to the document, from January 1, 2025, it will be 10 rubles per liter instead of the current 7 rubles. In addition, taxes are paid by producers of kvass, the volume of ethyl alcohol in which does not exceed 1.2%. It is believed that this drink contains sugar.
According to the Finance Ministry, all this is necessary to reduce sugar consumption by the population. Also, in this way, money in the amount of 8.3 billion rubles will be transferred to the state account in 2023. According to forecasts, this year the amount will increase to 20 billion rubles. The Treasury will use these funds to finance health measures, including the fight against diabetes.
How does this affect costs?
- On the one hand, it doesn't seem like a very large sum. On the other hand, if you multiply it by annual consumption, the sum will be huge. This type of product is always consumed in the family or, for example, to pay for festive events," the expert said.
— Traditionally, at the end of the year, prices rise, and during the holidays, demand increases. Also, during this period, people tend to make purchases spontaneously, without calculating the cost, suggests Maxim Chirkov.
Even a small price increase can have a real impact on demand. Consumers tend to choose less sweet drinks. There are two reasons for this. Firstly, it will be cheaper, and secondly, it will look healthier.
— Of course, it makes sense for producers to switch to drinks with less sugar in general. However, the economist believes that these changes will be relatively unnoticeable, since the process will be slow.
However, this approach allows for price changes. Sugar is an expense and its price is included in the final cost. This means that producers can save on both sugar costs and excise taxes by reducing sugar levels.