Russia’s Ministry of Finance has put forward a proposal to introduce licensing for both wholesale and retail trade of tobacco products, e-cigarettes (vapes), and hookahs, slated to begin in March of next year. Businesses would need to pay a fee to obtain a sales permit, ensure their products comply with registration requirements in the national goods marking system, and have no outstanding tax debts.
The initiative to tighten control over tobacco product circulation has garnered support from the Federation Council. Anatoly Artamonov, head of the Council’s Committee on Budget and Financial Markets, stated, “This is absolutely correct, as there are many counterfeit products on the tobacco market today. Smoking is already harmful, and when people smoke surrogates, it’s a catastrophe. Moreover, the budget loses significant funds from illegal tobacco trade.” Senator Artamonov also suggested imposing criminal liability for unlicensed tobacco sales as a preventative measure. Federation Council Chair Valentina Matviyenko has advocated for sharing a portion of tobacco excise tax revenues with regional authorities to incentivize their efforts in combating illegal cigarette sales.