Federation Council speaker proposes excise on tobacco-free nicotine products
In short
Federation Council speaker Valentina Matviyenko said at budget hearings that the chamber supports regulating the circulation and consumption of tobacco-free nicotine and nicotine-free products and introducing an excise tax on them, with the proceeds going to regional budgets. She also said regions must work to expand their own revenue base, called balanced regional budgets the most important topic, and asked the Finance Ministry to watch regional debt.
Why it matters
The proposal would create a new revenue stream for regional budgets from a category of products that, according to the documents, is not currently covered by this excise. It sits alongside a broader discussion of regional finances, in which the government has moved the repayment of regional budget loans beyond 2030; the documents do not state whether the excise idea has been drafted into legislation.
Key facts
- Federation Council speaker Valentina Matviyenko said the chamber supports regulating the circulation and consumption of tobacco-free nicotine and nicotine-free products. [ 1 , 2 , 3 ]
- She proposed introducing an excise tax on such products, with the revenue credited to regional budgets. [ 1 , 2 , 3 ]
- She said regions would have strong motivation to exercise control over the market because excise revenue would flow to them. [ 2 , 3 ]
- She said regions must themselves increase their revenue base and called ensuring balanced regional budgets the most important topic. [ 2 , 3 ]
- She recalled that repayment of regions' budget loan debt was postponed from 2026 to a later date and said commercial credit debt requires constant attention. [ 2 , 3 ]
- Kommersant reported that in late September the government submitted to the State Duma a federal budget bill for 2027 and the planning years 2028-2029 that provides for deferring regional budget loan repayments beyond 2030, which the government says will free about 300 billion rubles for regional economic and social development. [ 3 ]
Confirmed by several sources
- Federation Council speaker Valentina Matviyenko said at budget hearings that the chamber supports regulating the circulation and consumption of tobacco-free nicotine and nicotine-free products and introducing an excise tax on them with revenue credited to regional budgets. [ 1 , 2 , 3 ]
- She linked control over the market to regional financial motivation, saying regional oversight would be strong. [ 2 , 3 ]
- She said regions must strengthen efforts to increase their own revenue base and called balanced regional budgets the most important topic. [ 2 , 3 ]
- She recalled the postponement of regional budget loan repayments and said the situation with commercial credits requires reinforced and constant attention. [ 2 , 3 ]
Still unclear
- Whether a bill on the excise has been drafted or submitted, and when the measure could take effect. No document describes legislative text or a timeline; the proposal is reported as a statement at budget hearings.
- The proposed excise rate and the expected volume of revenue for regional budgets. None of the documents gives a rate or an estimate.
- Details of the regulatory model for the market outlined by Kommersant. This appears in a single business outlet, and its text ends mid-sentence, so the described June 2025 model of registration in the state marking system, state duty and federal wholesale licences is incomplete.
What local media are saying
Timeline, local time
- TASS reports the Federation Council's position on regulating tobacco-free nicotine and nicotine-free products. [ 1 ]
- Interfax reports Matviyenko's proposal to credit an excise on tobacco-free nicotine to regional budgets, with her remarks on regional finances. [ 2 ]
- Kommersant publishes its account, including the government's late-September submission of the 2027-2029 budget bill and the deferral of regional budget loan repayments beyond 2030. [ 3 ]