OREANDA-NEWS  Russia is discussing the possible introduction of an excise tax on sugar. Shopper's Telegram channel reports that they wanted to fill the budget at the expense of sweet tooth.

Managers of three food production companies and heads of two organizations cooperating with the food industry said that the introduction of an excise tax on sugar was discussed in preparation for the Business Russia forum.

Among the options considered are the exclusion of raw sugar from the list of goods for which a preferential VAT rate of 10 percent and a certain excise tax on products are applied. It is proposed to set an excise tax of 100 rubles per kilogram of sweets or to differentiate it from 47.7 rubles for chocolates without chocolate to 100 rubles for chocolates.

The ASCOND Confectionery Association has sent its proposals to the Ministry of Agriculture. Its representatives warn of a possible increase in production costs, a change in product range, a reduction in investment plans, a decrease in export potential and a possible increase in retail prices.

Global sugar prices have reached their highest in a year, coming close to 20 cents per pound. The cost of the product soared due to the deterioration of the harvest under the influence of the El Nino climatic phenomenon, which can cause, among other things, an increase in ocean temperature and a change in atmospheric pressure.