Comparative Analysis of Alcohol Excise Taxation and State Alcohol Policies in Russia and Germany

Elena V. Iadrennikova, Ralf A. Busse

Abstract


The influence of excise policy on alcohol consumption has been a focus of interest among Russian and international researchers. In Russia, the socio-economic effects of alcohol abuse are as damaging to the country as its health effects. This problem can be addressed by stimulating a shift of consumer preferences from spirits towards low-alcohol beverages, such as wine and beer. The purpose of this study is to evaluate the efficiency of state alcohol policies, in particular the price and non-price measures, in Russia and Germany and the influence of these policies on alcohol consumption. Based on our research findings, we are going to devise recommendations for improvement of the state alcohol excise policies in these countries. The hypothesis is that for Russia, a feasible solution would be to readjust its alcohol excise policy by increasing the tax burden on spirits and reducing the burden on low-alcohol beverages, which would change the price structure for different kinds of alcohol products. The research methodology involves the analysis of the current state and characteristics of alcohol excise taxation in Russia and Germany, the measures of the state alcohol policies implemented in these countries and their influence on tax revenues and alcohol consumption. We also conducted comparative analysis of the restrictive measures of manufacture, distribution, sale and consumption of alcohol products in Russia and Germany; the dynamics and types of alcohol excise rates in Russia and EU countries. Yet another question discussed in this study is the influence of restrictive measures, especially excise duties, on the amount and structure of alcohol consumption in Russia and Germany. Our study has shown the need to readjust the alcohol excise policy in Russia by taking into account the experience of Germany and other European states.

For citation

Iadrennikova E. V., Busse R. A. Comparative Analysis of Alcohol Excise Taxation and State Alcohol Policies in Russia and Germany. Journal of Tax Reform. 2020;6(1):54–72. DOI: 10.15826/jtr.2020.6.1.075.

 Article info

Received February 10, 2020; Revised March 6, 2020; Accepted March 27, 2020


Keywords


excise tax, alcohol beverages, alcohol policy, tax rates, alcohol consumption, price and non-price measures of state regulation

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