Russia’s national parliament (the Duma) has decided to significantly increase the excise duty on domestic wines produced from imported raw materials.
The decision came as amendments to the national tax code, which came into force on 1 January 2017, were approved.
The rate of duty for still wines produced from imported raw materials had now doubled, from RUB 9.00 to RUB 18.00 ($0.14 to $0.28) per L. The duty on Champagne and sparkling wines produced from imported raw materials without a protected geographical indication increased by 10 rubles to 36 rubles per L.
At the same time, the Duma chose not to go ahead with the planned rise of excise duties on still and sparkling wines produced from domestic raw materials with a protected geographical status and designation of origin. This was mainly due to a significant decline in wine production in Crimea and the Kuban region (the major centres of Russia’s wine production) this year.
Russian lawmakers believes the implementation of this measure will help significantly reduce the volume of imports of wine materials, in particular from Turkey, and will help support domestic producers of wine and wine materials.