The Russian Ministry Of Health Opposes The Ban On The Sale Of E-cigarette And E-liquid, Or Incurs An Annual Tax Loss Of 12 Billion Rubles

Nov 27, 2023

The Russian Ministry of Health opposes the ban on nicotine products, which will result in significant tax losses.
According to TASS on November 24th, the Russian Ministry of Health has stated that it does not support the ban on the sale of nicotine containing and nicotine free tobacco oil.
A draft withdrawal bill submitted by the department suggests that this may lead to a violation of the concept of the Citizen Health Protection Act and result in legal conflicts and ambiguous interpretations.
According to reports, the Ministry of Health also pointed out that by 2023, the estimated consumption tax revenue from nicotine containing tobacco oil produced and imported into Russia is 3.6 billion rubles.
The department predicts that tax revenue will increase in the coming years, reaching 12.1 billion rubles, 12.6 billion rubles, and 13.1 billion rubles in 2024, 2025, and 2026, respectively.
The Ministry of Health believes that if retail is prohibited, it will result in annual tax losses of over 12 billion rubles (RMB 964 million), and there is currently no clear source of compensation.