Increase in alcohol prices this year. The Ministry of Finance proposed increasing the minimum price for strong alcohol. The Cure for Poverty

Strong alcohol should rise in price faster than inflation, according to the Russian Ministry of Health. The department sent proposals to the Ministry of Finance on how to achieve this. Current legislation assumes that the excise tax rate on strong alcohol will not change until 2020. The Ministry proposes to review it already in 2018. Currently, the minimum retail price for a half-liter bottle of vodka is 205 rubles. The optimal price for such a bottle is more than 300 rubles, the department believes.

The Ministry of Health has sent proposals to the Ministry of Finance to increase the excise tax on alcohol with an alcohol content of more than 9% in 2018. A representative of the ministry told Izvestia about this. The growth rate of the tax rate, according to the department, should outpace inflation. The target for this year is 4%, in July it was 3.9%, as indicated on the Central Bank website.

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- Increasing excise taxes is the most effective method of reducing alcohol consumption. When we index the excise tax to inflation, we maintain the already existing availability of alcohol. For strong products, including vodka, the tax rate should grow faster than inflation so that such alcohol becomes less affordable than low-alcohol products, said a representative of the Ministry of Health. He added that the optimal price for a 0.5 liter bottle of vodka should be more than 300 rubles.

The press service of the Ministry of Health declined to comment further.

At the end of June this year, the government introduced amendments to the Tax Code, according to which the excise tax on strong alcohol in 2018–2019 will remain unchanged - 523 rubles per liter of anhydrous alcohol. Indexation will occur only from January 1, 2020 - up to 544 rubles, i.e. by 4%. At the end of July, the law was signed by the president. Excise tax rates on alcohol are determined based on the need to solve several problems simultaneously. This is the formation of budget revenues, limiting alcohol consumption and changing the structure of such consumption in favor of low-alcohol products. This was stated by representatives of the Department of Tax and Customs Policy of the Ministry of Finance.

From 2012 to 2014, the excise tax rate on strong alcohol increased by 97% - from 254 rubles per liter of anhydrous alcohol to 500 rubles; in 2015–2016 it did not change. The minimum retail price for vodka in 2012 was 125 rubles for a half-liter bottle - by May 2017 it increased to 205 rubles. As a result, from 2013 to 2016, the volumes of production and sales of strong alcoholic beverages decreased sharply. Production fell 35.5% to 89.7 million dl, and sales fell 36% to 93 million dl.

However, the decrease in the availability of legal alcohol has led to an increase in the illegal sector, which experts estimate at 50–60%. Deputy Head of the Ministry of Economic Development Oleg Fomichev reported this in a letter to the Federation Council at the beginning of 2017.

Since the beginning of the year, the Ministry of Economic Development, the Ministry of Industry and Trade and the Ministry of Finance have been discussing alcohol rates. The Ministry of Economic Development and the Ministry of Industry and Trade proposed reducing them. The optimal price for a half-liter bottle of vodka, according to two departments, is 120–130 rubles.

Chairman of the Board of the International Confederation of Consumer Societies Dmitry Yanin is confident that serious changes in alcohol consumption can be expected only when a half-liter bottle of vodka costs about 500 rubles.

The head of the Center for Research of Federal and Regional Alcohol Markets, Vadim Drobiz, is convinced that consumers who have already switched to surrogate drinks will not react in any way to the increase in vodka prices. Meanwhile, the legal market is capable of shrinking by 10% - people will reorient themselves to homemade moonshine.

The Ministry of Finance did not respond to Izvestia’s request.

The Ministry of Finance of the Russian Federation proposed increasing the minimum price for a half-liter bottle of vodka from 190 rubles to 219 rubles. This is stated in the text of the draft regulatory legal act posted on the federal portal.

The explanatory note to the document states that the price revision is due to an increase in the cost of excise taxes from January 1, 2017, as well as electricity tariffs from July 1, 2016. The project is scheduled to come into force in June 2017.

At the end of December 2016, after the death of 74 people in the Irkutsk region from poisoning with a surrogate bathing concentrate "Boyaryshnik" (later the number of victims increased to 76), Russian President Vladimir Putin instructed the government to prepare proposals for changing excise tax rates on alcohol and alcohol-containing products to reduce demand for alcohol substitutes.

Later, the head of the Ministry of Finance, Anton Siluanov, however, said that the publication on the federal portal of draft regulatory legal acts of the project, which stated an increase in the minimum price for vodka to 219 rubles, “was premature,” TASS reports.

He noted that the Ministry of Finance has not developed proposals to increase the minimum price for vodka and is discussing this issue. Siluanov promised that the draft order would be published “in the near future.”

The Ministry of Finance regularly makes proposals to increase excise taxes on alcohol. The Ministry of Economic Development of the Russian Federation, on the contrary, proposes to lower prices for alcoholic beverages in order to legalize the shadow market and increase excise tax revenues. Another such initiative was reported in mid-December last year by the Kommersant newspaper. According to the publication, a corresponding proposal was found in the list of institutional measures to support the economy in 2017. It was noted that the Ministry of Finance does not support the liberal initiative of the Ministry of Economy.

Minimum prices for strong alcohol in Russia have been set by the state since 2009, which is explained by the need to combat the production of counterfeit goods. In October last year, the Ministry of Finance proposed increasing excise taxes on vodka, and against this background, alcohol companies warned of a drop in legal production. In August 2016, the department proposed increasing the minimum price for vodka to 197 rubles per half liter.

Last time, the Ministry of Finance increased the minimum retail price for vodka from June 13, 2016 by five rubles, to 190 rubles per half liter. Experts argued that this decision was political and useless for the fight against shadow production, for the sake of which these minimum prices are set, and that there is practically no vodka on the market at this price.

In February 2015, the minimum retail price of vodka was reduced from 220 to 185 rubles after Putin’s speech at a meeting of the State Council, when he spoke out against increasing prices for alcohol and indicated that “illegal vodka, all kinds of surrogates, alcoholic drinks of this kind arise from a certain inflated prices for legal products."

An inevitable price jump awaits consumers in 2016. The fall in oil prices led to inflation and devaluation of the ruble, respectively, to higher prices for goods and services during 2015. For which groups of goods should we expect further price increases in 2016?

The only thing that can remain at the same level is mobile communications, the Internet and apartments. For everything else, Russians will have to pay 5-20% more.

Products

Increase by 10-15%. It is associated with an increase in the cost of transportation, which in turn is associated with the introduction of charging for heavy trucks over 12 tons.

Tax on fishermen will increase cost of fish for the consumer. From 2% on the price of cod and up to 15% on herring. This will happen if the law “On increasing the fee rate for the use of biological resources” is adopted, the draft of which the government must submit to the State Duma before July 1 on Putin’s instructions.

Cereals, bread, dairy products, fruits and vegetables will rise in price within the limits of inflation. On meat and poultry the price may fluctuate within 10%. Next year, an increase in the output of meat products is expected, which will become a limiting factor for price growth.

Alcohol and cigarettes.

Amateurs may suffer the most imported wines. It is expected that Rosalkogolregulirovanie will set minimum prices for alcoholic beverages. They have not yet been installed. A fork of 120-140 rubles is being discussed. Since the volume of sales of imported wines is small, prices for them are always set with a reserve.

Price cigarettes in 2016 can be compared with the cost of delicacies and smoking for Russians can become an unaffordable luxury. The excise tax rate will increase by 30% from the new year and the price for a pack of cigarettes will rise by 10-11 rubles.

Increase in price beer due to the refusal of most breweries to bottle in large plastic bottles. Starting next year, beer will be sold in containers of up to 1 liter, and packaging costs will accordingly increase. So, the consumer will have to pay 1 ruble more for each bottle of beer.

The price of “folk vodka” will remain the same. And the price increase for other vodka products will be within 7-8%. This is due to competition in the alcoholic beverages market and no one will dare to significantly increase the price.

Distributors made purchases in advance products for children, cosmetics and clothing. Therefore, price increases of 10 to 20% for these groups of goods can be expected in the second quarter of 2016.

The price increase will also affect the following goods and services:

Public transport 7-15%, and already from January 1st by 6.9%

Catering- gradual increase in price by 30%.

Cars - 5%

Appliances- 10-15%

Flights - in Russia by 10%. Foreign trips by 20%

Railway passage- 7,5%

Housing and communal services- 4-15% Russians on average will have to pay 200 rubles more.

Medicines- by 5-20%

Beauty Salons- up to 7%

And one last thing. Fitness centers will increase the cost of services, since equipment and simulators are imported and their price is tied to the dollar exchange rate. Due to this sports will increase by 5-20% and the costs will fall on the shoulders of those visiting sports clubs.

Traditionally, the most significant and predictable increase in prices relates to tariffs for housing and communal services. In Russian regions, corresponding indexation rates have been approved. New payments will begin to accrue on July 1, 2016.

The maximum increase in tariffs will occur in Moscow: on average, according to documents adopted by the mayor's office, communal services will rise in price by 7.4%.

Gas prices are rising the slowest (2%), electricity prices are rising the fastest

(depending on the type of meters and time of consumption - by 7-15%). Cold water and sewerage will rise in price by 7%, and hot water by 7.8%.

In 2016, Moscow also provides for price indexation for the maintenance and repair of residential premises. For non-subsidized areas (area above the established standards, “second housing”) the fee increases by 4%, and for areas within the social norms (subsidized housing) - by 15%. At the same time, a system of subsidies for rent and major repairs is provided for low-income families.

The only thing that can be consoled is that

even in Moscow, the indexation of tariffs for housing and communal services is lower than the predicted inflation rate (8.1%).

In other regions of the Russian Federation, the rise in prices for utilities will be lower than in the capital. For example, in St. Petersburg and the Kamchatka Territory, indexation will be 6.5%, in the Tyumen region - 5.9%, and in the Sverdlovsk region - 5.7%.

Do you have an extra ticket?

From January 1, 2016, fares for public transport in Moscow and the region have changed. Thus, according to the capital’s Department of Transport, it was decided to thin out the assortment of tickets: instead of 56 varieties, passengers will now have access to 37. In particular, metro tickets for 5 and 11 trips, as well as “90 minute” tickets for 5, 11, 20 and 40 trips.

Prices for single unlimited tickets remained the same, with the exception of preferential ones: topping up a student’s or schoolchild’s social card will now cost 15 rubles. expensive. And here

Passes with a limited number of trips have risen in price, and quite significantly.

For example, one trip on the Troika card (electronic wallet) increased by 2 rubles, a single trip for 60 trips now costs 1,570 rubles. instead of 1400, and “90 minutes” for 60 trips - 2400 instead of 2100 rubles.

The changes also affected ground transport. TAT tickets for 2, 3 and 5 trips have been removed from sale, so buying trips directly from drivers, albeit at an inflated price, has become completely unprofitable. Prices for tickets remaining on sale have increased. A monthly pass for ground transport will cost 1,700 rubles. instead of 1600, annual - 8400 instead of 8000 rubles.

Travel by train within the city boundaries, for example on the Moscow-Kalanchevskaya - Setun route, from Kursky station to Novogireevo or from Yaroslavsky station to the Los platform, will cost 32 rubles. (in 2015 it was 30 rubles). And the zone tariff, which applies to intersubject routes within Moscow, will rise by 1.5 rubles. and will amount to 20.5 rubles. for one trip.

Neither drink nor snack

According to forecasts, the rise in prices for food products in 2016 will slow down by one and a half to two times. But price tags in stores say otherwise. Already in December, everything on the shelves became more expensive, and, according to various estimates, in the future

consumers will have to spend 3-5% more on food than before. This will primarily affect vegetables and fruits due to seasonality.

The cost of dairy products will rise by 7%, and bakery products may even rise in price by 25%. The reason for all these disappointing changes is the instability of the ruble exchange rate and the increase in the cost of transportation.

According to the associate professor of the educational and scientific center “New Russia. History of Post-Soviet Russia” RSUH, in the current economic situation the authorities will try to begin to regulate prices in two ways. You can set fixed trade markups and profit margins or introduce regulated prices.

“As a rule, this ends badly. Prices regulated in this administrative way have their downside: the emergence of shortages and a black market. We need to look for other ways for low-income groups of the population. For example, introduce a special procedure for the supply of essential items like food cards (in Moscow, a system of electronic certificates for the purchase of food for the poor has been in effect since 2013 - Gazeta.Ru). Or look for other ways to provide at relatively low fixed prices,” the expert explained.

Alcohol prices will also rise in 2016. According to experts, the growth will be approximately 10%. And all because of the Unified State Automated Information System for recording the volume of production and turnover of alcoholic beverages (USAIS). From January 1, 2016, enterprises must record the fact of wholesale purchases of alcohol in the Unified State Automated Information System. Retail will finally switch to the system on July 1, when all retail outlets will also have to reflect in the Unified State Automated Information System the fact that they sell alcohol to their visitors.

Many entrepreneurs complain about the high cost of installing EGAIS: sums of 80-100 thousand rubles are quoted, which is very painful even for establishments with substantial revenue. Small enterprises will be forced to either switch to counterfeit goods, or lose their license, or even close down altogether, but

The most common option seems to be to include the costs of the Unified State Automated Information System in the cost of each glass.

At the same time, the Ministry of Economic Development emphasized that the rise in price of alcohol “may be insignificant, taking into account a number of factors, including high competition in the alcohol market and the purchasing power of the population.” The department added that

prices for tobacco products will not undergo significant upward changes in 2016.

The Cure for Poverty

Two more topics, the rise in price of which invariably causes a strong reaction in society, are medicines and gasoline. Prices for medicines from the beginning of 2015 to November increased by 19.4%, over 12 months - by 21%. The main increase in prices occurred in the first quarter of 2015 against the backdrop of a significant weakening of the ruble.

“State regulation of prices for medicines included in the list of vitally important drugs occurs through the establishment of maximum wholesale and retail markups to the registered prices of manufacturers. The main task of the state is to prevent a sharp rise in prices for these products,” noted the Ministry of Economic Development of the Russian Federation. Due to this,

even if the rise in drug prices continues in 2016, it will be smoother and less significant than in 2015,

The definitions “smoothly” and “less significantly than last year” do not seem to apply to gasoline. To make forecasts about fuel prices in 2016, it is enough to look back at previous years, recalls Kudyukin. It has been repeatedly noted that when the price of oil on the world market falls, our vertically integrated oil companies (which are about ten companies that control 90% of the entire oil market) begin to increase fuel prices on the domestic market, thus partially compensating for their losses in exports. From which it follows that the rise in gasoline prices will most likely continue.

Income goes away

According to Pavel Kudyukin’s forecasts, the downward trend in real wages will continue in 2016. “Many organizations are transitioning to new forms of payment, in which even nominal wages will in many cases decrease. That is, with a formal salary increase, additional payments, allowances and bonuses will be cut. This will primarily affect public sector workers. The reason is the lack of indexing provided. It is not yet possible to say exactly how much the level of nominal wages has fallen, but in some organizations (for example, Moscow clinics and secondary schools) the reduction has already occurred by a quarter,” says the expert.

In order to somehow escape from the current crisis circumstances, Kudyukin suggests that hired employees organize themselves into militant trade unions, put pressure on employers and still achieve higher wages: “A whole series of strikes shows that something is beginning to shift here.

It is possible that next year we will see a revival of protest activity in the workplace.”

The situation with pensions is somewhat different. In February 2016, pensions are expected to increase by 4%, which is again below the inflation rate. However, the pension indexation system does not include working pensioners (this is from a quarter to a third of pensioners), which means that increasing pensions can be forgotten as long as they work. Consequently, the level of real incomes of working pensioners will fall, explains Kudyukin.

In general, it is quite difficult to say unambiguously what awaits the regions in the coming year, the expert continues. This is primarily due to holes in the budget.

The Altai Territory and all the North Caucasian republics found themselves in a pre-default state.

“The regions fell heavily into debt due to the implementation of the 2012 presidential decrees on increasing salaries for public sector employees. The federal budget did not provide money for this in full, and with the deterioration of the economic situation, these revenues also decreased. Therefore, the regions took out short-term loans. Now the situation in them is very difficult,” summed up Pavel Kudyukin.

Alcohol prices have risen in Ukraine: starting this Sunday, minimum retail prices for vodka, cognac and wine have increased by an average of 20%. This decision was made by the country's cabinet of ministers. Alcohol production factories are one of the main donors of the state budget. However, this measure could play a cruel joke on the government. Now more than half of the Ukrainian vodka market is in the shadows, and there is a danger that with an increase in price, the share of counterfeit products will increase, and the production of legal products will decline. Details are in the material of the Kyiv correspondent of RT.

  • Buyer in one of the supermarkets in Kyiv
  • Reuters
  • Gleb Garanich

From August 20, minimum retail prices for alcoholic beverages will increase in Ukraine. Vodka will rise in price by 14% - to 79.55 UAH. ($3) per 0.5 liter bottle. Cognac - by 15-30%. So, a three-star drink will cost 119.46 UAH. ($4.6), five-star - 138.5 UAH. ($5.3) per 0.5 liter bottle. Grape wine rose in price by 12% - to 37 UAH. ($1.42) per 0.7 liter bottle, and sparkling wines - by 13.3%, to 79.19 UAH. ($3).

“The minimum retail price for alcohol was introduced in November 2016. At the same time, in 2017, excise tax rates on most alcoholic beverages (vodka, liqueurs, cognac, wine, etc.) increased. There has also been an increase in other price components, so today the minimum prices do not correspond to the real costs of production and sale of alcoholic beverages,” the Cabinet of Ministers of Ukraine said in a statement.

The government increased excise taxes on alcoholic beverages on March 1, 2017. For alcoholic beverages they increased by 20% - to 126.96 UAH. ($4.9) per liter of 100% alcohol. The Cabinet of Ministers noted that they responded to repeated requests from large producers to increase the minimum retail prices for alcohol.

Budget Donor

Alcohol in Ukraine has been rapidly rising in price over the past three years. For example, in 2014, the minimum retail price for vodka was half as low - 40 UAH. ($1.5) per 0.5 liter bottle.

Alcohol companies are one of the main donors to the state budget. According to estimates by the Ministry of Finance of Ukraine, the March increase in excise taxes on alcohol will additionally bring the budget 1.3 billion UAH at the end of the year. ($50 million).

For comparison: Ukraine’s total revenues in 2017 will amount to UAH 721.4 billion. ($27.7 billion), of which 190.8 billion UAH. ($7.3 billion) are the country’s various loans.

“Last year, the government promised to introduce a moratorium on increasing excise taxes for the next two to three years, but did not keep its promise. The financial burden on producers is already growing due to an increase in minimum wages, rising prices for utilities and alcohol,” the head of a large alcohol company told RT.

  • Reuters
  • Gleb Garanich

An RT source in the Ukrainian government said that the next increase in the price of alcoholic beverages is associated with the decision of Prime Minister Vladimir Groysman to increase pensions by an average of 10.1% starting this fall.

“For these purposes, it is necessary to find an additional 40-50 billion UAH. ($1.5-1.9 billion), so all possible means are being used,” said RT’s interlocutor.

  • Reuters
  • Konstantin Chernichkin

Consumers prepared for price increases in advance. The director of a Ukrainian supermarket chain told RT that sales of alcohol in the first two weeks of August were 20% higher compared to the same period last year.

“Consumers were buying vodka in boxes,” the interlocutor emphasized.

Go into the shadows

Rising prices for alcoholic beverages will have a negative impact on the industry, experts say. The specialized association “Ukrvodka” estimates the share of the shadow market of forty-degree water at 40-50% of total consumption. In the coming years it could grow to 60%. As a rule, illegal vodka is sold in markets, small shops and “razlivayki” (inexpensive cafes where alcohol is sold at low prices for bottling), the director of a large alcohol company told RT.

“The prices for such products, which are often copies of well-known brands, are approximately 20-30% lower compared to legally produced goods. There are no problems with its sales,” he emphasized.

The production of counterfeit products is thriving in Ukraine. For example, on August 1, the police, with the participation of special forces, conducted 52 searches at illegal vodka mini-factories in the Ternopil, Transcarpathian and Lviv regions. Security forces discovered and seized 90 thousand bottles of counterfeit goods and more than 80 thousand liters of alcohol totaling UAH 30 million. ($1.15 million).

Legal production of alcoholic products is declining: alcohol is becoming more expensive, and people are buying cheaper illegal products.

  • Reuters
  • Gleb Garanich

In the first six months of 2017, 19.8% less vodka was produced in Ukraine compared to the same period last year - up to 6.4 million deciliters. Over the same period, the production of cognac and brandy decreased by 21.7% - to 909 thousand deciliters, according to a study by the State Statistics Service of Ukraine. The decline may accelerate before the end of the year.

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