Starting in 2026, Russia will significantly increase excise taxes on tobacco products, leading to higher prices for consumers. The tax on cigarettes will rise by over 11%, while other tobacco products will see an increase of around 7%. This move aims to boost federal budget revenue to over 1 trillion rubles and potentially reduce smoking rates.
Key Takeaways:
- Cigarette Tax Hike: Excise rates for cigarettes will increase by 11.3%.
- Heated Tobacco & Vapes: Taxes on heated tobacco and e-liquids will also rise.
- Budget Boost: Expected revenue from tobacco excise taxes is projected to exceed 1 trillion rubles in 2026.
