Russian Health Ministry Opposes Ban on Vape E-Liquid Sales, Warning of RUB12 Billion Annual Tax Loss

Russia’s Health Ministry opposes a ban on nicotine products, saying it would lead to major tax revenue losses.

Breaking news: According to a November 24 report by Russia’s TASS news agency, the Russian Health Ministry stated that it does not support banning the sale of nicotine and nicotine-free e-liquid. 

In a draft opinion submitted on a bill proposing withdrawal, the ministry argued that such a move could undermine the principles of public health protection law and create legal conflicts as well as ambiguous interpretations. 

According to reports, the ministry also noted that by 2023, excise tax revenue from nicotine-containing e-liquid produced in or imported into Russia is estimated at 3.6 billion rubles. 

The ministry expects tax revenue to continue growing in the coming years, reaching 12.1 billion, 12.6 billion, and 13.1 billion rubles in 2024, 2025, and 2026, respectively. 

The Health Ministry believes that if retail sales are banned, annual tax losses would exceed 12 billion rubles (about RMB 964 million), and there is currently no clear source of compensation.