Alcohol producers will lobby for the change of the existing state excise policy

April 22, 2016 19:17

A new decree on the creation of a group of alcohol producers which control 65% of the market was signed. The creation of such a group is needed in order to overcome the falling volume sales of hard liquor by 10% in the first half of 2015 in comparison to the levels of 2014. United in one group the producers will lobby in favor of the price policy changes both in domestic and foreign markets. They will also advocate the restrictions of both alcohol and counterfeit alcohol imports from Russia. Such a group may also kick off new amendments to the tax code in order to prevent the growth of alcohol excise taxes as well as advocate new restrictions for the retail chains in their interaction with alcohol producers. Taking into account falling incomes of the populations and the fact that alcohol excise taxes make out 4% of the budget, it is likely that alcohol prices will fall.