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Putin signs decree setting excise tax on sugary soft drinks from July 2023

The excise will not apply to fermented beverages, kvass with ethyl alcohol content from 0.5% to 1.2% inclusive, juices, fruit nectars, juice-containing beverages and fresh fruit drinks

MOSCOW, November 21. /TASS/. Russian President Vladimir Putin signed a law recognizing sugary drinks as excisable items starting July 1, 2023.

The published document was initiated by the government, it amends the Russian Tax Code.

The excise rate is set as 7 rubles ($0.12) per liter. Non-alcoholic beverages produced with the use of sugar or other sweeteners containing more than 5 grams per 100 ml are recognized as sugary drinks.

The excise will not apply to fermented beverages, kvass with ethyl alcohol content from 0.5% to 1.2% inclusive, juices, fruit nectars, juice-containing beverages and fresh fruit drinks. The tax also will not cover specialized and enriched foods (except tonics and carbonated beverages), alcohol with the strength over 0.5%, grape, beer, fruit, honey and other mash, and fermented fruit materials. Non-alcoholic (with strength up to 0.5%) beer containing sugar is excluded from goods with the zero excise rate.

The government expects extra federal budget revenues from this excise to be about 35 bln rubles ($573.1 mln) annually. Such funds are planned to be spent on the federal project to combat diabetes.

The excise will apply to beverages in consumer packages but not to beverages made and packed for public catering. Small and medium enterprises will be obliged to pay the excise from October 1, 2023 and not from July 1 of the next year.

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