Smokers and drinkers to be taxed for their bad habits in Russia

In the land of vodka and death before retirement, the government has realised that smokers and drinkers are a valuable commodity in terms of the tax they are willing to pay for their habit.

The only difference between Russia and the UK though, is that at least Russia is honest about it’s motives in increasing the taxes.

It has nothing to do with health really but is all about the taxes (emphasis mine) :

Frequently drinking and smoking Russians should pay more to the state than those who do not abuse these habits and lead a healthy lifestyle. This is the opinion of the Minister of Finance Alexei Kudrin, who offered to force smokers and alcohol consumers to pay more money to the government through an increase of excise taxes on these products. This makes smokers and alcoholics the saviors of the state.

“This is for people to know: those who drink vodka and smoke will contribute more to the state,” said the minister.But besides this sarcastic wording of the new-old fiscal idea, socially responsibility Kudrin said that raising excise taxes is also one of the measures of the state to combat alcoholism and smoking. If you smoked a pack of cigarettes, then you contributed more resources to address social problems: support of demography, development of other social services, support of fertility,” said Kudrin.

However, none of the said budget items are directly related to the receipt of the budget revenues from excise taxes on tobacco and alcohol. But Minister Kudrin transferred the message accurately. The state will take advantage of smokers and alcohol consumers.

Over the past four years, excise taxes for tobacco products have doubled, and over the last six years they grew seven-fold. Since the increase has been gradual, it was not particularly noticed by the population. Besides, vodka and tobacco products are those of inelastic demand. This is particularly true of tobacco, which will be consumed through savings on other goods.

Just wait until they discover the wonders of minimum pricing as a means to ramp up the tax take promote healthy attitudes towards alcohol.