According to the estimates of the Ministry of Industry and Trade of Russia, the 2D digital code marking of tobacco products made it possible to reverse the negative trends in the market, due to which, after a long-term decline, the collection of excise taxes increased and at the same time the share of illegal trafficking decreased.

Digital labeling of tobacco products has become mandatory in Russia since July 1, 2020. And according to data for ten months of 2020, the increase in the collection of excise taxes amounted to 8.7% – while in previous years the total collection of excise taxes on tobacco products fell slightly, but steadily.

In addition, the latest survey as of November 1, 2020, showed that the share of illegal trafficking fell to 10.2% comparing 12.7% in the first quarter of 2020.

At the same time, the decrease in the share of illegal trafficking occurred against the background of the fact that in 2017-2019 there was a threefold increase.

The Ministry also recalled that after the introduction of mandatory labeling, 18 new tobacco enterprises were registered, which is about 40% of their total number in Russia.

Also, in 2020, 11 illegal factories were stopped in Russia. In addition, large channels for the supply of unmarked products from the United Arab Emirates, Armenia and Belarus were identified and cut off, the total budget losses for which amounted to about 1 billion rubles.