Russian President Vladimir Putin approved a tax reform law that introduces excise taxes on pharmaceutical ethyl alcohol from 2025. To prevent a rise in drug prices, the excise tax on ethanol will be waived for the production of medicines and medical devices. The new law also includes a progressive personal income tax scale starting from 2025, with rates ranging from 13% to 22%. It also raises the corporate income tax to 25% and introduces an amnesty for businesses. The changes also concern a simplified taxation system for small and medium-sized businesses.The document was published on the official portal of legal acts and will come into force on January 1, 2025.
The law provides, among other things, for the introduction of excise taxes on the pharmaceutical substance of ethyl alcohol. In order to prevent a hike in drug prices, it is proposed to waive the excise tax on pharmaceutical ethanol used in the production of specified drugs and preparations, as well as products containing ethyl alcohol of less than 20% and medical items. According to the law, excise tax rates will increase progressively: from January 1 to December 31, 2025, they will be 673 rubles; from January 1 to December 31, 2026, they will be 700 rubles; and from January 1 to December 31, 2027, they will be 728 rubles.
