The Federation Council proposed directing excise taxes on tobacco-free products to regional budgets
Valentina Matvienko stated the need to expand the income base of the constituent entities of the Russian Federation
Quick Look
- The Federation Council proposed transferring revenues from excise taxes on tobacco-free nicotine and nicotine-free products to regional budgets.
- Speaker of the Federation Council Valentina Matvienko emphasized the need for regions to make efforts to increase their own revenues as part of budget planning.
AI-generated summary
Why It Matters
Currently, the excise tax on tobacco-free nicotine-containing mixture for heating is credited in full to the federal budget of the Russian Federation.
The Federation Council proposes to replenish regional budgets through excise taxes on tobacco-free and nicotine-free products, but also expects efforts from the regions themselves to increase budget revenues, said Valentina Matvienko, speaker of the chamber.
“It is important for the constituent entities of the Federation to have the opportunity for long-term planning. We should think about additional measures. The Federation Council, in particular, advocates regulating the circulation and consumption of tobacco-free nicotine and nicotine-free products and introducing an excise tax on them with its transfer to regional budgets,” the politician said at parliamentary hearings on the draft budget of the Russian Federation for 2027-2029.
Currently, there is already an excise tax on tobacco-free nicotine-containing mixtures for heating; according to the Budget Code of the Russian Federation, it is fully credited to the federal budget.
What to Watch
AI outlook — possibilities, not facts
Consideration of the initiative as part of the preparation of the Russian Federation budget for 2027-2029.
Likely · Within months
Open Questions
- Which product categories will be subject to the new regulation?
- Will the bill be passed as part of the 2027-2029 budget?
