Tobacco production in Russia in the near future can fall in price. As follows from the list of the maximal retail prices declared in Federal tax service in the end of December by five largest manufacturers of cigarettes: Philip Morris, British American Tobacco, Japan Tobacco International, Gallaher Liggett-Ducat and Imperial Tobacco, the prices appeared to be lower, than the retail ones. Average excess of a present floor price in shops reaches 10-15%. Now in retail sale one can find the rest of the goods manufactured last year. After the stock will come an end, the sellers will have to decrease the prices for the cigarettes.
Since January, 1st in the country a new system of raising taxes for tobacco excise is active. Now its rate depends on the maximal retail price (MRP) which tobacco factories from the beginning of the year are obliged to specify on packs of cigarettes. Rates of the excise make up 100 rbl. for one thousand cigarettes with filter plus 5% of the maximal retail price, the excise than should be not less than 115 rbl. For cigarettes without filter - 45 rbl. for one thousand pieces plus 5% of MRP but not less than 60 rbl. Thus retail outlets have no right to sell cigarettes at the higher price.
Actually world-wide monopolists who have almost completely bought up the tobacco market of Russia managed with the help of lobbyists in the government and the State Duma to reduce excises. It will lead to decrease of incomes of the budget from tobacco products and will allow the companies to increase sales volumes - i.e. to lift their profit.
As it’s a question of specific goods which production and sale any state worrying about its citizens tries to limit as much as possible, such position of the Russian authorities is clear – that is the way all colonial administrations behave. The world monopolists selling in mother countries cigarettes of absolutely different quality and with other restrictions are, generally speaking, all the same how many natives will die of cancer as a result of their commercial activity.
