OREANDA-NEWS The Ministry of Finance plans to abandon the use of paper excise taxes for cigarettes. Together with Operator-CRPT LLC (operator of the Honest Sign digital labeling system) and the Federal Tax Service (FTS), the agency is developing a mechanism for using digital labeling to control the payment of mandatory contributions for tobacco and nicotine-containing products, TASS reports.

In a letter to the Federation Council Committee on Budget and Financial Markets, the Ministry of Finance noted that the innovation will affect products manufactured and sold in Russia.

According to the roadmap of the Ministry of Finance, the introduction of digital excise taxes on tobacco and beer in Russia will begin in the first quarter of 2024. The launch of a pilot project on the use of data on the marking and traceability of excise payments during desk tax audits was thought about back in May 2023. The experiment will last until July 2024. The department wants to assess the possibility of refusing to declare excise duty and the possibility of switching to a non-declaration regime.

The national digital marking system has been operating in Russia since 2019. Its requirements apply to dairy products, bottled water, medicines, tobacco, shoes, light industry goods, fur coats, perfumes, tires and cameras, beer in kegs, electronic cigarettes and liquids for them. From September 1, 2023, labeling of water for baby food, soft drinks and juices, wheelchairs, biologically active additives (dietary supplements), antiseptics and medical products will become mandatory.