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Tuesday, October 25, 2016

With “light hand” of the Ministry of Finance, the wine will rise by 20%

In 2017, wine in Russia could be much higher due to the fact that the Ministry of Finance proposed a two-fold increase in the excise tax from 9 to 18 rubles per liter “of Bacchus”. The increase provided for in the draft of the basic measures of tax policy in 2017-2019. Growers from this perspective in shock because they have never been consulted. The President of the Union of winegrowers and winemakers Leonid Popovich in an interview with “MK” stated that entrepreneurs again deceived the officials who have many times sworn not to raise taxes.

photo: kremlin.ru

— If the government approves the project, the excise tax on wine, except sparkling wines, champagnes, fruit wines and wine beverages, next year will increase to 18 rubles. You have decided that this will give the budget?

In 2016 Russia will produce about the same amount of wine as last year — about 33 million dal. This including imported bulk wine, bottled in our country. Our wine industry is not yet ready to completely replace foreign products, 30% of which are imported not in bottles, tankers, rail and tanker trucks. Large enterprises bottling in glass containers with further sticker labels manufacturers there are in Moscow, Leningrad, Bryansk region, etc. So, according to the calculations of our Union, a twofold increase in excise tax will increase the budget of about 4 billion rubles.

— Sparsely. And how will this affect the price of a bottle of 0.7 liters?

— First of all will be consumers of wine in the lower end — 150-200 rubles per bottle. The growth in the retail prices can reach 15-20%. However, I want to emphasize that it’s not about price. Growers, like all Russians, in the last few months of the President, the Prime Minister repeatedly heard that the tax burden on businesses will not increase. Plant grapes, make wine, the state creates one for you good conditions. Indeed, the Ministry of agriculture in 2014, annually doubled the funds allocated for the planting of new vineyards. And suddenly this project from the Ministry of Finance. And with the industry, no one even consulted.

— However, you can argue that the excise tax is a charge not a tax.

Is all from evil. The excise tax is clearly a tax, which is enshrined in the Tax code and obligatory for payment. Otherwise, the businessmen face criminal liability. And the fact that it wants to double is a disgrace. In fact, businessmen in plain text saying: don’t invest in viticulture. Now many will do so. I believe that this is an error that must be corrected.

— Do you think this is funny?

Exactly. Production cycle — from planting the vine to the finished product — takes five years. ROI is twice as long. People with money, having received such a signal from the Finance Ministry, will refuse from the wine project. Where is the guarantee that after three years, any discretionary decision, the excise tax will rise to 50 rubles, and then the repayment period for a subsequent decline in production will increase even more! It turns out, the Ministry of Finance lives one day. Today we wrap up a 4 billion rubles, and further though the grass not to grow. The fact that in ten years the budget will not receive 100 billion rubles in the form of various taxes, new jobs, no one cares. I want to understand it was an accident or not? I decided not to have wine and he is now more busy time? Then we’re in the clear.


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