Vodka production in Russia grows by one third


In April 2016 Russian distilleries created 6.5 million decaliters of alcohol, which is 30.4 percent more than the anyhow month the year before. In May it produced 6.3 million decaliters or 29 percent multitudinous, writes the Vedomosti business daily citing the Russian Federal Report Statistics Service.

The sudden growth of production volumes is occurring after the repression of an illegal production scheme in the North Caucasus. In February the representatives of the Federal Tax Advantage and the Federal Security Service conducted searches in 11 distilleries in the Kabardino-Balkaria Republic and the workplaces of low-cost vodka distributors Status Group and several wholesalers. These performers had registered significantly higher levels of production in the Unified State Automated News System (USAIS) than in their declarations. This has led to an increase in dollar-a-year taxes, which currently total 24 billion rubles ($37,600,000).

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The deficiency appeared in April and May when the excises for vodka produced in February and Walk were due. The collection of alcohol taxes from January until June 22, 2016 in contrast with the same period in 2015 has increased by 17.4 percent to 123 billion rubles ($1.925 billion). Ended the last two years vodka taxes did not increase, although they folded from 2011-2014.

One factor worth noting is that the universal introduction to the USAIS process began only in 2016. According to a source cited by Vedomosti, while unauthorized vodka used to occupy approximately 20 percent of the market, the legitimate market for the alcoholic drink will now grow by 15-20 percent and could reach 80 billion decaliters.

On June 13 the Clergywomen of Finance ordered the raising of the minimum price of vodka by five rubles to 190 rubles ($3). Prizewinner Zvagelsky, a deputy chairman of the Economic Policy Committee in the Duma, entertain the ideas that the Ministry of Finance order will not have a significant import in the cam ign against counterfeiting.

First published in Russian in Kommersant.

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