In retaliation for the unfriendly actions of some countries, Russia used the trick of increasing import taxes on these two items.

Russian Prime Minister Mikhail Mishustin has signed a decree increasing import duties on flowers and drinks with an alcohol content of over 9% from a number of countries.

Russia increases tariffs on imported flowers from several countries to 'protect the domestic market from external pressure'. (Source: russia-flora.com)

The measure was taken in response to unfriendly actions by some countries, including increasing import duties on some Russian goods.

According to the decree, from August 2, 2024, to December 31, 2024, vermouth, whisky, rum, gin, vodka, liqueurs and ethyl alcohol will be subject to a 20% tax, but no less than 3 euros ($3.27) per liter of 100% distilled alcohol. Russia currently imposes an import tax of 1.4 euros per liter of pure alcohol and 1.5 euros on rum and gin.

At the same time, wine taxes increased from 20% to 25%, but not less than $2 per liter.

For the domestic market, with the new tax rates, a bottle of American Scotch whisky or bourbon will increase in price by almost 280 rubles ($3.3), and wine in a 0.7-liter bottle will increase by about 120 rubles.

The Russian Finance Ministry stressed that the measure does not ban the import of relevant products but is aimed at “protecting the domestic market from external pressure.”

According to the ministry, the market share of imported products in the spirits market is 12%, the rest is domestically produced.

Experts say that prices will generally increase and the government will increase revenue by raising taxes, but consumption of these products will not decrease.

Russian consumers have an alternative to European wines with drinks from South America. Russian brands are also becoming more popular among consumers.

Import duties will increase prices not only on wine but also on flowers from some countries. The new tax will be 20% of the customs value of the goods, compared to the current rate of 5%, but not less than 0.3 euros per 1 kg.

Traditionally, the main supplier of flowers to Russia has been the Netherlands, a member of the European Union (EU). However, Russian consumers have many alternatives.

First up is Ecuador. Flowers from this country have become the leading source of imports to Russia, since five years ago Dutch roses and tulips were infected with parasites.

The group of major flower suppliers also includes Kenya, Colombia and neighboring Belarus. Ethiopia, China and Thailand also have potential.

The decision will increase the share of flowers produced in Russia and friendly countries on the domestic market, the Russian Agriculture Ministry said. Last year, the country grew 393.5 million flowers and buds, according to the ministry.

Overall, over the past five years, flower production in Russia has increased 1.5 times.

Source: https://baoquocte.vn/tra-dua-hanh-dong-khong-than-thien-cua-mot-so-quoc-gia-nga-dung-chieu-tang-thue-nhap-khau-2-mat-hang-nay-281277.html