Russia Implements Tax Hike on Tobacco Alternatives starting 2024

Aug.29.2024
Russia Implements Tax Hike on Tobacco Alternatives starting 2024
Russia to significantly increase prices of tobacco substitutes starting September 1, 2024, causing prices to soar.

According to a report from Bst.Bratsk on August 28th, starting on September 1, 2024, Russia will significantly increase the prices of tobacco alternatives.


The Russian government will regulate the minimum prices of e-cigarettes, pods, hookah mixtures (including those without tobacco), and e-cigarette liquids, leading to significant price increases. Some consumable prices are expected to rise four to five times their current levels.


Russia is set to implement new requirements for the sale of tobacco products, establishing minimum retail prices for such goods. Market participants have referred to these new measures as a "prohibitive consumption tax." These measures are likely to significantly reduce the popularity of "alternative" smoking and force many Russians to revert to smoking traditional cigarettes.


It has been reported that businesses must adjust their product prices by the end of August to comply with the new regulations, which set a price floor based on Decree No. 301 of March 14, 2024. However, due to legal loopholes, they will need to adjust prices twice - the lower MRPs that will come into effect on September 7 have been confirmed in Russian Federal Government Decree No. 1050, issued on August 5, 2024. During this week, the temporary MRPs will be significantly higher (for example, the temporary MRP for a 30ml e-cigarette nicotine e-liquid will be 2130 rubles (approximately $23), but from September 8, this price will drop to 1800 rubles (about $20)).


The new regulations will apply to all nicotine-containing products, including bottled e-liquid, prefilled cartridges, and disposable e-cigarettes.


According to Article 7, paragraph 6 of Federal Law No. 203-FZ dated June 13, 2023, the government will calculate the minimum prices of these products based on a formula that includes the consumption tax rate, value-added tax rate, and uplift coefficient.


Although Order No. 1050 slightly eased the burden, expenditures on nicotine products are still expected to skyrocket. For example, the minimum retail price (MRP) of e-cigarettee-liquid (with and without nicotine) will reach 60 rubles per milliliter (about 0.6 USD), with a standard 30 milliliter bottle of e-liquid priced at 1800 rubles (around 20 USD). This is nearly five times the current price, which is around 500 rubles (about 5 USD) according to data from the "Honesty Mark" system. Roughly speaking, the cost of consuming 120 milliliters (4 bottles of 30 milliliters) of e-cigarettee-liquid per month currently amounts to about 2000 rubles (around 22 USD). Starting from September 7th, the same e-liquid will cost 9504 rubles (around 104 USD) (MRP of 1800 rubles [around 20 USD]/30 milliliters + distributor standard markup of 10% + retailer markup of 20%, totaling 2376 rubles [about 26 USD]).


Pre-filled cartridges or capsules containing e-liquid will cost 76 rubles (0.8 US dollars) per milliliter, with a price of 228 rubles (2.5 US dollars) for each three milliliter cartridge. The price for e-liquid in disposable nicotine systems starts at a minimum of 101 rubles (1.1 US dollars) per milliliter (14 milliliters in a 10,000 puff mode costs 1414 rubles or 15 US dollars).


In 2024, the consumption tax on e-cigarette liquid (containing 0.1 milligrams/ml of nicotine or more) is set at 21 rubles (0.23 USD) per milliliter, increasing to 22 rubles (0.24 USD) in 2025. The tobacco consumption tax for heated consumption is established at 9016 rubles (99 USD) per kilogram in 2024, rising to 9377 rubles (102 USD) in 2025.


In late April of this year, the Russian State Duma discussed a proposal to completely ban the sale of e-cigarettes in Russia. By the end of May, the State Duma and the Russian government announced plans to strengthen restrictions on nicotine products, including increasing fines for smoking in non-smoking areas and imposing fines of up to 7,000 rubles (77 USD) on parents of minors under the age of 16 who smoke.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Japan Tobacco Inc. (JT) has introduced the Ploom AURA Glacier White heated tobacco device in Japan, adding a new color option to the existing Ploom AURA lineup. The device maintains the existing SMART HEATFLOW technology and HEAT SELECT SYSTEM with four heating modes, while expanding the ecosystem through new accessories including front panels, back covers, a car holder and wireless charging covers. The product entered pre-sale in Japan on June 30, 2026, followed by broader retail availability from July 7.
Aug.03
Juul Sublicense Reshapes Vuse Alto Patent Bill as Court Ends R.J. Reynolds’ 5.25% Royalty Obligation to Altria
Juul Sublicense Reshapes Vuse Alto Patent Bill as Court Ends R.J. Reynolds’ 5.25% Royalty Obligation to Altria
According to Law360 on August 31, 2026, a federal judge in North Carolina ruled that a patent sublicense between R.J. Reynolds Vapor Co. and Juul Labs Inc. relieves Reynolds of its obligation to continue paying royalties to Altria Client Services LLC over Vuse Alto. A jury had previously found that Vuse Alto infringed three Altria patents and awarded approximately $95.2 million in past damages, after which Reynolds was ordered to pay an ongoing royalty equal to 5.25% of positive net sales. The new ruling finds that a valid sublicense can eliminate future infringement, potentially ending what Altria described as hundreds of millions of dollars in future royalties.
Sep.01
Hunan China Tobacco Industry files heated tobacco device patent featuring adult-user identification through pressure sensing
Hunan China Tobacco Industry files heated tobacco device patent featuring adult-user identification through pressure sensing
China-based Hunan China Tobacco Industry Co., Ltd. and Shenzhen Baisha Technology Co., Ltd. have filed a patent application covering an adult-user identification mechanism for heated tobacco devices. The patent proposes using flexible pressure sensors installed in the device grip area to collect pressure distribution patterns generated when users hold the device. The system evaluates factors including effective contact area, grip shape and contact duration, and combines roller movement detection to determine whether unlocking conditions are met. The filing reflects exploration of device-level user recognition and smarter interaction technologies for heated tobacco products (HTPs).
Aug.05
UK Reform Party Proposes Cap of 1,000 Vape Shops Under Plan to Tighten Retail Controls
UK Reform Party Proposes Cap of 1,000 Vape Shops Under Plan to Tighten Retail Controls
The UK Reform Party has proposed limiting the number of dedicated vape shops in the country to around 1,000 as part of a plan to tighten oversight of vape retail channels. The proposal was put forward by Reform UK deputy leader and MP Lee Anderson. The plan remains a political proposal and has not become UK government policy, with no detailed legislation, implementation timeline or allocation rules announced.
Aug.10
Product | PMJ Adds Bold Ruby to IQOS ILUMA i Lineup in Japan, Convenience-Store Rollout Starts Sept. 29
Product | PMJ Adds Bold Ruby to IQOS ILUMA i Lineup in Japan, Convenience-Store Rollout Starts Sept. 29
Philip Morris Japan (PMJ) launched Bold Ruby as a new regular color for the IQOS ILUMA i and IQOS ILUMA i ONE in Japan on September 16, 2026, priced at JPY 6,980 and JPY 3,980, respectively. Initial sales began through IQOS online and physical channels, with convenience stores and selected tobacco retailers set to follow from September 29. Bold Ruby is a regular rather than limited-edition colorway and is available for the ILUMA i and ILUMA i ONE, but not the ILUMA i PRIME. The release does not involve changes to the devices' core hardware or functions.
Sep.22
Russian Strikes Destroy JTI and Imperial Brands Ukraine Warehouses, With Losses Reaching Tens of Millions of Hryvnias
Russian Strikes Destroy JTI and Imperial Brands Ukraine Warehouses, With Losses Reaching Tens of Millions of Hryvnias
According to Ukrainska Pravda, Russian strikes on the Kyiv region during the night of Aug. 4-5, 2026, damaged warehouses storing products of Japan Tobacco International (JTI) and Imperial Brands Ukraine. JTI said a finished goods warehouse in Kyiv Oblast was destroyed, with no employees injured, and that it did not expect disruptions to retail supplies. Imperial Brands Ukraine said products stored at warehouses of distributors and retail partners were affected and estimated losses from the strikes at “tens of millions of Ukrainian hryvnias” (roughly hundreds of thousands of U.S. dollars).
JTI
Aug.07