Excise tax on non-alcoholic sugar-containing drinks will be introduced in the Russian Federation from July 1, 2023

Russian President Vladimir Putin signed a law imposing an excise tax on sugar-containing drinks from July 1, 2023.

According to the law, the excise rate is set at 7 rubles per liter. Sugar-containing drinks are soft drinks produced with the addition of sugar or other sweeteners, the content of which exceeds 5 g per 100 ml.

The excise tax will not be levied on fermented drinks, including kvass with an ethyl alcohol content of 0.5% to 1.2%, nectars, juice drinks and fruit drinks.

Alcohol with a strength of more than 0.5%, specialized and enriched food products, as well as grape, beer, fruit, honey and other musts also do not fall under the excise tax.

It is noted that additional federal budget revenues from excise taxes on sugar-containing drinks should be about ₽35 billion a year, which is planned to be directed to the implementation of the federal project to combat diabetes.

Earlier it was reported that the State Duma adopted in the second and third readings a budget-forming law, under the terms of which Russia will introduce an excise tax on sugar-containing drinks in the amount of 7 rubles per liter from July 1, 2023.

On October 19, RBC, citing a statement by representatives of the Ministry of Agriculture, reported a likely increase in prices for carbonated drinks due to the entry into force of the law on the introduction of an excise tax on sugar-containing drinks. In addition, the new law may cause a decrease in the production and consumption of such drinks in Russia.