The Russian government has drafted detailed plans to tax palm oil to reduce consumption of an ingredient it deems unhealthy and to boost revenue.
The idea, finance ministry officials have told just-food, is supported by President Vladimir Putin.
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The plans involve introducing an excise tax on palm oil from 1 July are already in place, with a USD200/tonne rate being approved by the finance ministry.
In a note sent to just-food, the finance minister Anton Siluanov said: “The excise duty on palm oil could be introduced in Russia…in the second half of 2016. This is a measure used in many countries to reduce the consumption of harmful products and, on the other hand, increase income to their budgets.”
It is not the first attempt of the Russian government and parliament to tax what they deem harmful food products and ingredients. A draft law on a special tax for potato crisps and carbonated beverages was tabled at the Russian State Duma on 24 December 24, but was voted down five days later.
Meanwhile, Russian food producers have criticised the plans for a levy on palm oil.
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By GlobalDataAccording to Natalia Coroy, commercial director of Solnechny Products, a large Russia-based baked foods manufacturer, the new excise tax will force producers using this ingredient to increase their prices.
Coroy said: “The production of fats and margarines in Russia and other countries of the [Eurasian Economic Union]…needs the use of palm oil and there is currently no replacement.”
