The excise taxes collected on sugary drinks will be directed to the fight against diabetes


On November 21, Russian President Vladimir Putin signed a law on the introduction of an excise tax on the production of sugary drinks from July 1, 2023. Drinks with a sugar content of more than 5 g per 100 ml will be taxed at 7 rubles per liter. In particular, the income received will be directed to the implementation of a new federal project: The Fight against Diabetes, Vademecum reports.

Corresponding amendments were made to the Tax Code of Russia. On November 21, the Ministry of Finance reported that excise tax receipts are estimated at 25 billion rubles per year. According to Maxim Novikov, the head of Soyuznapitkov, starting from next year, prices for sugar-containing beverages may rise at least 7% excluding inflation.

The original plan was to introduce the excise tax in January 2023, but before the second reading of the bill the deadline was shifted. Part of the funds received will be invested in the implementation of the project “The Fight against Diabetes” (scheduled to start in 2023).

“The decision to direct the income from the introduction of excise taxes on sugar-containing beverages to combat diabetes in October 2022 was announced by Leonid Ogul, the first deputy chairman of the Health Committee. According to him, the deputies have already asked the Ministry of Health for more detailed information about the parameters of the federal project The Fight against Diabetes for 2023–2025. It is assumed that due to the federal project, patients with diabetes will be provided with medical devices and consumables for continuous glucose monitoring. The project is also expected to generate funding to provide patients with test strips and necessary medications. The program should also contribute to the establishment of diabetes schools in Russia’s regions, which will provide assistance to patients with endocrine problems,” the publication writes.

To find out what industry participants expect from the new federal project to combat diabetes, read this publication from GxP News.