Updated at 11:44,21-11-2017

Belarus and Russia unable to agree on tobacco excise tax

Euroradio

The Eurasian Economic Commission council was supposed to discuss the project of excise harmonization on December 18. However, it may not happen, the commission press service reports.

Belarus and Russia cannot accept the terms of the agreement, Kommersant informs.

Belarus wants to have the possibility of reducing the excise rate for first price category cigarettes by two times. Russia is against it because it may result in the grey market growth.

The excise harmonization is needed to liquidate ‘the flow’ of tobacco from the neighbouring states. According to the company Nielsen, 30.08% of cigarette packs sold in Russia are produced by Hrodna tobacco factory. The amount of illegal cigarettes in Russia increased by 1.5 times in 2015 and reached 2.7%.