Russian Government to Introduce Tax on Sugar and Palm Oil

Feb 5, 2016 — 14:45
Feb 5, 2016 — 14:45

In an effort to increase federal revenues, the Russian government is set to introduce taxes on unhealthful products, the Vedomosti business daily reported Friday, citing a document from a meeting with Russian Prime Minister Dmitry Medvedev.

The list of goods subject to the new tax include palm oil and sugary drinks. The list may also include electronic cigarettes, potato chips and other products with high levels of fat and sugar, two unidentified federal officials told Vedomosti.

The idea was supported by Russian President Vladimir Putin, both officials said.

According to an unidentified representative of the Ministry of Economic Development, the issue is already being developed.

“We have the instructions from the government on this subject and in the near future (within a few weeks) will present suggestions and calculations,” he was quoted by the newspaper as saying.

The representative pointed out the new measure is aimed not only at bringing money into the federal budget but also at reducing the consumption of products with high levels of sugar and fat.