Russian authorities have invented a “tax on tax” for the food industry

Russia appears to be running out of ways to collect money. The latest target is the food industry. The Kremlin plans to introduce a new state fee for entering data on the circulation of labeled goods into the national monitoring system. Businesses are calling it a “tax on tax,” warning that if the measure takes effect, food prices will rise and the gray market will reemerge.

Producers point out that they already pay for each labeling code (60 kopecks per unit), as well as 20% VAT and additional accounting and compliance costs. Now, the government wants to charge even for submitting this information. According to industry associations, the new initiative could cost the food sector over 1.5 billion rubles per year. Business leaders call the move absurd, saying the state is trying to patch its budget at the expense of its own economy—essentially building a fiscal pyramid.

Tags: Russia