Russian Business Leaders Advocate Vaping Regulation Over Ban
As the Russian State Duma prepares to consider a bill that would completely ban electronic nicotine delivery systems (ENDS), business representatives and industry experts are voicing their opposition. They argue that a total ban would not effectively address the issues at hand and would instead create new risks and threats to the market.
Advocates for “smart regulation” suggest that focusing on balanced policies would be more effective than outright prohibition. Sergey Borisov, Chairman of the Board of Trustees of “OPORA RUSSIA,” emphasizes that a complete ban on ENDS or flavored e-liquids would negatively impact at least 150,000 small and medium-sized businesses currently operating legally in the market.
Experts also highlight the need to reduce excise taxes to combat the growing illegal market. The significant increase in excise tax on e-liquids has created a substantial price gap between legal and illegal products, with the excise tax rate on e-liquids for ENDS in Russia being nine times higher than the average in other countries. As a result, the share of counterfeit products in the ENDS sector has skyrocketed to 95 percent.
“OPORA RUSSIA” suggests prioritizing the fight against the black market rather than introducing new bans, echoing Russian President Vladimir Putin’s statement that “there is always a line, crossing which prohibitions no longer work.” The business community believes that comprehensive work, including balancing excise tax rates, limiting nicotine concentration in e-liquids, and introducing reasonable market access requirements through a registry model, would be more effective than a complete ban.
The Ministry of Industry and Trade also opposes the vaping ban, warning that prohibitions lead to the formation of a black market and significant losses for the state budget. Experts maintain that balanced regulation will protect citizens’ health while preserving the legal industry under state control.
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