Russian government says illicit cigarette trade cost 46 billion rubles in tax revenue in H1

In the first half of 2023, the Russian government lost over 46 billion rubles (approximately $481.33 million) in tax revenue due to illicit cigarette trade.

According to reports from the International News Agency, the Russian government lost over 46 billion rubles (approximately $481.33 million) in tax revenue due to illicit cigarette trade in the first half of 2023.

Vladislav Zaslavsky, head of the Commodity Digital Marking System Department of the Russian Ministry of Industry and Trade, stated: "According to the latest research concluded this month, the proportion of illicit cigarette trafficking among smokers is 13.3%."

Zaslavsky mentioned during a retail roundtable meeting in the Volga region on August 24 that, according to the NNCC (National Center for Combating Illegal Trafficking of Industrial Products), the estimated loss is at least 46.5 billion rubles.

According to Zaslavsky, every percentage point of illicit cigarette trafficking costs the federal budget about 7 billion rubles in excise tax.

The National Nuclear Control Center will conduct research on "nicotine products" in the second half of 2023. As of the end of 2022, the market share of illicit nicotine products was 79%, with 93% of the illicit sales being nicotine liquids.

References:

[1] Russia Blames Illicit Trade for Substantial Tax Losses