Reports from the Russian Brewers’ Union (RBU) say the country’s major beer producers filed a lawsuit against tax authorities Wednesday for publicly advocating an excise duty hike on beer.
OAO Baltika Brewery, ZAO Ochakovo and ZAO Vena have all filed a suit to the Moscow Court of Arbitration.
Vladimir Gubanov, head of department of alcohol and tobacco taxation at the Tax Ministry, told a press conference in April that it was essential to raise excise duty on beer so that the government can receive more in tax revenues.
Russia’s department of alcohol and tobacco taxation indicated in April that the January 25% rise in exercise duty was needed in order that the government can receive more in tax revenues.
Baltika was hit hard, as most of its beer is in the medium-to-low price range, which is particularly price sensitive. It reported a drop in both profit and market share.
Baltika, the country’s largest brewer, is owned by Baltic Beverage Holding, a joint venture between Carlsberg A/S and Scottish & Newcastle PLC.
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By GlobalDataRussia’s second-largest brewer Sun Interbrew Ltd, a unit of Belgium’s Interbrew S/A, hasn’t to date joined the other Russian brewers in public lobbying of any kind.
