The 2026 excise tax increase will significantly raise retail prices for all tobacco products in Russia. With an 11.3% tax hike on cigarettes and 7% on other tobacco items, the minimum price for a pack of cigarettes has already jumped to 153 rubles. Vapes and heated tobacco are also affected, with higher costs expected to boost federal revenue while straining consumer wallets.
Key Takeaways:
- Price Surge: Minimum cigarette pack price rose from 135 to 153 rubles.
- Tax Hikes: Excise on cigarettes up 11.3%; vapes and heated tobacco also taxed higher.
- Budget Boost: Expected to generate over 1 trillion rubles for the federal budget.
- Implementation: Old prices valid only until April 1, 2026.
The 2026 tobacco excise tax hike refers to the Russian government's latest fiscal measure to increase duties on nicotine products, aimed at boosting federal revenue and curbing consumption. As of this year, smokers across Russia are facing a tangible increase in the cost of their habit, affecting everything from traditional cigarettes to modern vaping devices.
Breakdown of Price Increases by Product Category
The new tax rates have led to immediate price adjustments across the board. While retailers can sell old stock at previous prices until the end of the first quarter, the new minimums are set.
| Product Type | New Minimum Price / Rate | Previous / Comparison |
|---|---|---|
| Cigarettes (Pack) | 153 Rubles | 135 Rubles (2024) |
| Cigars (Unit) | 814 Rubles | - |
| Heated Tobacco (per kg) | 10,915 Rubles | 9,807 Rubles |
| Vape Liquids (per ml) | 49 Rubles | 44 Rubles |
Economic Impact and Expert Analysis
Vladimir Chernov, an analyst at Freedom Finance Global, notes that the excise growth exceeds expected inflation. This suggests a deliberate strategy by authorities to leverage the fiscal effect while simultaneously attempting to reduce tobacco consumption.
- Inflationary Pressure: The hike could contribute an estimated 0.1–0.15% to 2026 inflation.
- Consumer Burden: While tobacco is a limited part of the consumer basket, the costs are passed directly to buyers.
The Reality of Smoking Rates in Russia
Despite official reports of declining smoker numbers, Andrey Loskutov, executive director of the "For Smokers' Rights" movement, offers a different perspective. He estimates there are still approximately 33 million smokers in Russia, down from 40 million in 2013.
Loskutov argues that price increases alone are losing their effectiveness as a deterrent. "They 'quit' mainly because prices are rising very strongly. But today this factor no longer plays a role. For the remaining smokers, other strong motivations are needed," he stated, suggesting a need for cultural shifts rather than just fiscal pressure.
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