Russia Plans to Increase Tobacco Tax Rates by 2025

Russia plans to increase tobacco taxes by an average of 4.7% in 2025, according to a second reading of the tax reform bill. The amendment outlines the increase in tax rates for cigarettes and cigars from 2945 rubles per thousand in 2025 to 3186 rubles in 2027, with the tobacco tax increasing to 9,807 rubles per kilogram in 2025, potentially to 10,199 rubles in 2026, and to 10,607 rubles in 2027. Additionally, the tax rate on e-cigarette liquid will be increased to 44 rubles per milliliter by 2025, 46 rubles by 2026, and 48 rubles by 2027. The consumption tax is an indirect tax on domestic goods and services.