Russia Proposes 6.5% Tobacco and E-Liquid Tax Hike for 2027
The Russian government has proposed an excise tax hike on tobacco and nicotine products starting in 2027. Outlined in draft amendments to the Tax Code, the proposal raises excise rates on cigarettes and raw tobacco by approximately 6.5% to align with the 2027–2029 federal budget framework.
Under the proposed rates, the fixed component for cigarettes and papirosi will increase from 3,278 rubles per 1,000 units in 2026 to 3,491 rubles in 2027, while maintaining the 18% ad valorem rate based on maximum retail price. The minimum tax floor will rise to 4,741 rubles per 1,000 sticks.
Proposed Russian Nicotine Excise Rates (2026–2029)
| Product Category | 2026 Rate | 2027 (Proposed) | 2028 (Proposed) | 2029 (Proposed) |
|---|---|---|---|---|
| Cigarettes (Min. per 1,000 pcs) | 4,452 ₽ | 4,741 ₽ | 4,931 ₽ | 5,128 ₽ |
| Smoking Tobacco (per kg) | 5,182 ₽ | 5,520 ₽ | 5,741 ₽ | 5,971 ₽ |
| Heated Tobacco (per kg) | 10,915 ₽ | 11,624 ₽ | 12,089 ₽ | 12,573 ₽ |
| E-Liquids (per ml) | 49 ₽ | 52 ₽ | 54 ₽ | 56 ₽ |
| Cigars (per piece) | 351 ₽ | 374 ₽ | 389 ₽ | 405 ₽ |
The Ministry of Finance prepared these indexed revisions alongside broader fiscal measures for the upcoming three-year budget cycle. These rates remain draft proposals and will take effect only after formal legislative approval.
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