Prospects of Introduction of Excise Tax on Sugar Sweetened Beverages in Russia

Excise taxes are among the most reliable sources of government revenue in any country, especially in times of crises and economic reforms. The refining of excise taxation is an important condition for improving the economic and social situation in the country and boosting public revenue. The introduction of excise tax on unhealthy foods and beverages is an effective way of generating additional budget revenues and improving people's health by reducing the consumption of the abovementioned products. The article looks at the role the excise taxes play in the system of state revenues and substantiates the need to expand the list of excisable goods in Russia by including sweetened alcohol-free beverages in it. The article also proposes a type and a size of the tax rate for the said beverages. The article suggests that excise tax be imposed on sugar sweetened beverages which will result in a significant fiscal effect for the state budget, reduce spending on the beverages in question and help maintain the nation's health. © 2017 Published by Future Academy www.FutureAcademy.org.uk