Ministry of Economic Development has proposed to reduce the excise tax on alcohol

Ministry of Economic Development has made a list of institutional measures to support the economy in 2017, which proposes to reduce excise rates and minimum retail prices for alcohol, as well as to remove restrictions on the retail sale of alcohol.
Deputy Economy Minister Oleg Fomichev proposes to reduce the excise tax on alcohol from 500 to 360 rubles per liter of pure alcohol in 2017, and the minimum cost of half a liter of vodka - from 190 to 136 rubles. According to the ministry, these measures will help reduce the illegal market and eliminate the excessive administrative burden on sellers of alcohol, prevents the development of competition in the industry.
According to Assistant Economy Minister Elena Lashkina revision of excise policy and removal of alcohol sale restrictions remain the most pressing issues. They plan to work together with other ministries, agencies and market participants.
Institutional arrangements will be prepared by May 2017 in the framework of the comprehensive plan of actions of the government until 2025.
The Ministry of Finance is opposed to this initiative, noting that for the control of illegal trafficking of alcohol introduced EGAIS. According to authorities, the reduction in excise taxes on liquor can lead to losses of budget revenues, a decrease of minimum retail prices - an increase in alcohol consumption and increased mortality.