WHO asks Russia to increase prices on cigarettes
World Health Organization in accordance with recommendations of which Russia has adopted anti-tobacco law this year is not satisfied with target rate of excise load after 2016 in this country.
Special WHO representative in Russia Luigi Migliorini has offered Russian Minister of Health to increase excise tax to 2020 sevenfold. Average price of cigarette pack will make 7.4 USD.
According to the opinion of foreign experts it will not only allow reducing consumption of cigarettes but also increasing budget profits.
Ministry of Health of Russian Federation will take suggestion of WHO into consideration - declared press secretary of Minister of Health. "Nobody has doubts that excise taxes should increase. The question is only in dynamic with which they should be increased" - he said.
In requirements of World Health Organization to Russia there is nothing exceptional: in developed countries tobacco products is imposed with taxes to the maximum for many years already. For example, in USA one carton of cigarettes costs 50-60 USD. But experts tell that excise tax rate should depend also on spending capacity of population and government considers this when determining rates.
According to calculations of Ministry of Finance of Russia excise tax will make 50 euro for 1000 cigarettes. According to the WHO opinion to 2020 excise tax in Russia should exceed 90 euro for 1000 cigarettes. Such growth, according to WHO calculations will allow government increasing budget revenues from excise tax collection and reduce consumption of cigarettes.
In WHO have considered that during such grow of the rate Russian budget will receive in form of excise tax earnings in amount of 709 billion rubles but sales volumes will reduce from 15.7 to 6.6 billion packs a year. Total number of smokers will be reduced by 12 million people. The price will be the main reason of refuse.