The new excise taxes effective January 1, 2026, will significantly raise retail prices for alcohol and tobacco products in Russia. Consumers can expect higher costs for spirits like vodka and cognac, as well as cigarettes and vape liquids, potentially shifting demand towards cheaper alternatives.
Key Takeaways:
- Alcohol Hike: Excise taxes on alcohol rose by 8–31%.
- Tobacco Costs: Minimum cigarette pack price set at 153 rubles.
- Vape Impact: Increased rates on heated tobacco and vape liquids.
- Market Shift: Predicted decline in premium alcohol sales.
Excise taxes are indirect taxes levied on specific goods, such as alcohol and tobacco, which are often used by governments to generate revenue and discourage consumption of harmful products. As of January 1, 2026, Russia has implemented a new wave of these taxes, directly impacting consumer prices.
Impact on Alcohol Prices
The alcohol market is seeing substantial adjustments. Excise taxes have increased by an average of 8–31%, leading to immediate price hikes for popular spirits.
- Vodka & Cognac: Retail prices have risen correspondingly with the tax hike.
- Consumer Behavior: Experts anticipate a decline in sales for premium brands as consumers may seek more affordable options.
Tobacco and Nicotine Product Changes
Smokers and vapers are also facing higher costs. The tax increases cover a broad range of nicotine products.
| Product Category | New Pricing/Tax Impact |
|---|---|
| Cigarettes | Minimum retail price set at 153 rubles per pack. |
| Heated Tobacco | Subject to increased excise rates. |
| Vape Liquids | Higher tax rates applied to e-liquids. |
Despite these price increases, experts predict that demand for tobacco products will remain relatively stable, unlike the more elastic demand expected in the alcohol sector.
- Russia Increases Alcohol & Tobacco Taxes 2026: What to Expect - January 15, 2026
- What Are Zyn Nicotine Pouches and Are They Safe for You? - January 9, 2026
- Nebraska Vape Registry Law Forces Removal of Popular Brands - January 5, 2026