Wednesday, 17 July 2013

Russia’s vodka tax: backfiring | beyondbrics

Russia’s vodka tax: backfiring | beyondbrics:

"
The Kremlin’s campaign against alcohol abuse is taking its toll on Russia’s vodka industry.

As soaring taxes on liquor have put the country’s favourite tipple beyond the reach of ordinary people, sales of legally produced vodka have plunged this year – and the Russian drinks market is awash with moonshine.

Production of vodka in Russia totaled 30.3m deciliters (800,441 gallons) in the first half of 2013, a fall of 28.3 per cent from the first half of last year, the Russian state statistics service reported this week. The decline has been accelerating since the start of the year when the government hiked taxes on hard liquor by 25 per cent and increased the minimum price of a half-litre bottle of vodka to Rbs170 ($5.25) from an earlier Rbs125."

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