The Ministry of Finance proposed to tax sugary drinks at the rate of 5 rubles. per liter

The Finance Ministry proposes to introduce excise duty on beverages containing added sugar of other sweetening and flavouring substances in the amount of RUB 5 per 1 litre, according to “Vedomosti” with reference to the materials for the meeting on additional budget revenues in the 2017-2019 biennium. held with Deputy Prime Minister Igor Shuvalov this week.

According to the estimates of the Ministry, the excise tax will increase revenues in 2017 by 25 billion rubles in 2018, 27% in 2019 — by 28 billion rubles. Thus, in General, over three years – 80 billion rubles. This was confirmed by two officials.

The sources did not specify what kind of drinks will be charged the excise tax. The representative of Shuvalov and Deputy Prime Minister Arkady Dvorkovich declined to comment. The representative of the Ministry of Finance did not respond to a request. According to the representative of the MAYOR, the Ministry has received proposals of the Ministry of Finance on the excise tax on sugary drinks.

According to the President of the Union of manufacturers of soft drinks (WIS) Dmitry Petrov, the excise tax on sugary drinks will be disastrous for the industry. He notes that sales of soft drinks in separate categories because of the crisis has already decreased by 10-15% in real terms, and in the regions of bankrupt small businesses.

The representative of the brewing company “Baltika”, part of Carlsberg and produces soft drinks Flash up and kvass “Grain edge”, agrees with the economic instability and protracted crisis any additional restrictions for business can have serious consequences.

Petrov says that the rise in prices of sweet soft drinks by 1% leads to a drop in their sales by 1.5%. With the introduction of the proposed MOF tax the sale of cheap drinks cost about 30 rubles — nearly half of the market will fall by 20-25%.

Representatives of PepsiCo in Russia and the Russian division Coca-Cola declined to comment. They noted that their position represented by the Union of producers of soft drinks. To comments producer of juices “Gardens Pridonya” the newspaper “Vedomosti” failed.