Finance · Russia

Russia's Finance Ministry Denies Plans for Sweet‑Tax Measures

Despite rumors of upcoming excise duties on confectionery and sugar‑sweetened drinks, officials say no such proposals are being prepared, while industry groups warn of potential fallout.

Russia's Finance Ministry Denies Plans for Sweet‑Tax Measures
Author
Democracy News Live Desk
Date
19 Oct 2026
Read
2 min
A Denial Emerges

On October 19, 2026, the Russian Ministry of Finance (Minfin) publicly stated that it had not put forward any proposal to introduce an excise tax on sweets. Deputy Minister Alexey Sazanov conveyed the denial in remarks reported by Interfax, saying the ministry had not suggested any taxes on confectionery or sugar. The statement came after earlier media reports had linked the idea of a sweet‑tax to a package of proposals for the 'Business Russia' forum.

Coverage
Industry Reaction

ACONA, an association of confectionery producers, warned that any future increase in taxes on sugar or confectionery could raise production costs and diminish the sector's export potential. Industry insiders, speaking anonymously, suggested that the government might still consider levies on sugar‑containing products, even as the finance ministry distanced itself from the notion.

The Numbers Behind the Debate

Projections suggest that an excise tax on sugar-containing drinks could increase the budget by 28 billion 731.4 million rubles in 2027. Additionally, import duties on these drinks are expected to total 3 billion 334.7 million rubles between 2026 and 2028. These figures have been discussed in policy circles, though the ministry has said no formal proposals are under preparation.

Alexey Sazanov made multiple statements clarifying the ministry's position.

Historical Context of Sweet Drink Taxes

Projections anticipate potential future increases to this excise, with an estimated budget gain of 28 billion 731.4 million rubles in 2027 and additional import duties of 3 billion 334.7 million rubles expected between 2026 and 2028. The ministry's recent denial specifically addressed the idea of a new excise on sweets, not the existing levy on drinks, which continues to be a separate policy track.

Official Statements Clarify Position

Alexey Sazanov made multiple statements clarifying the ministry's position. In one, he said, "The Ministry of Finance of Russia did not propose to introduce an excise tax on sweets." In another, he stated, "The Ministry of Finance is not preparing or proposing such proposals." A third remark was even more direct: "It is not preparing or proposing any proposals." These public denials came as industry groups such as ACONA voiced concerns about potential tax hikes on sugar and confectionery, warning of increased production costs and reduced export potential.

Where the Matter Stands Now

As of the date recorded in the chronology, the finance ministry has formally declined to advance any excise‑tax initiative targeting sweets or confectionery. The official position remains that no such measures are being drafted or considered. The projected revenue figures cited in the discussion remain hypothetical, contingent on policy decisions that, according to the ministry, have not yet been made.

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