Russian vintners wake up to new excise tax on grapes, winemaking materials
Under the new law, vintners who use Russian grapes will be able to receive a tax deduction
MOSCOW, January 1. /TASS/. The Russian government has introduced excise duties on base wine and grapes used in the winemaking industry starting on January 1, 2020. Earlier these products were not subject to any excise duties.
As of New Years’ Day 2020, the new excise duty on grapes used in wine making will total 30 rubles ($0.50) per tonne, and the excise duty on base wine will amount to 31 rubles ($0.50) per liter of production.
Under the new law, vintners who use Russian grapes will be able to receive a tax deduction.
Also, from January 1, 2020, a single rate on wine and sparkling wine comes into effect. The rate applies to both domestic and export production.
The excise duty on still wine has increased from 18 rubles ($0.29) to 31 rubles ($0.50) per liter, and the excise duty on sparkling wine has risen from 36 rubles ($0.58) to 40 rubles ($0.64) per liter.
Starting January 1, the excise duty on alcohol beverages with a share of ethyl alcohol of over 9% (except for beer, wine, fruit wine, sparkling wine, wine drinks produced without use of rectified ethyl alcohol made from food raw materials) has climbed from 523 rubles ($8.46) to 544 rubles ($8.80) per liter.
The excise duty on alcoholic drinks the share of alcohol less than 9% has gone from 418 rubles ($6.76) to 435 rubles ($7) per liter. In addition, the excise duty on cider, mead, as well as beer, which is 0.5%-8.6% in strength, has inched up from 21 rubles ($0.34) to 22 rubles ($0.36) per liter.
The excise duty on beer stronger than 8.6% rose from 39 rubles ($0.63) to 41 rubles ($0.66) per liter.