Russia increases alcohol tax by 500%!!!
I just came over this story from 3 days ago. What do you guys think?
Russia Quintuples Alcohol Tax
AP, Mar 28 2007
By John Dertus
Moscow - The Russian Duma passed today a new strict tax code that would in effect quintuple the tax on all alcohol, including the much famed vodka.
The new tax code will come into effect May 1st and is designed to reduce Russia's massive consumption of alcoholic beverages. "Our people are drinking themselves to death", says Ivan Kradkov, United Russia Duma member, "this year alone we have 2000 alcohol related deaths. This tax will encourage people to think twice".
A bottle of decent vodka under the new tax code will cost $20, as opposed to $5 right now. Beer prices, already highly taxed, will sky-rocket from $1 to $10.
Similar measures were put into effect under Gorbachev in the 1980's, when alcohol sales were banned altogether, with devastating effect to the economy and little public health effect. In fact, alcohol consumption increased by 10% while the GDP decreased by 22%.
"This time it is going to be different", Kradkov continues, "under Gorbachev the black market thrived, countering the governments efforts, while this time we will have measures in place. Some call it the rise of the Votchina again, but it really is a counter-black market push", alluding to the repressive Votchina under Ivan the Terrible, where hundreds of thousands innocent peasants were brutally murdered.
As Vladimir Putin, a well known abstainer from alcohol, tightens his grip around the Kremlin, some positive effects of his leadership can be seen. Every year 25 000 people suffer from alcohol related deaths and another 100 000 are hospitalized. This new law will put Russia in line with other Western countries and hopefully reduce these ill-flattering figures.
Demonstrators were to be seen outside the Kremlin for a short period, before they were brutally knocked down by the Votchina. In Putin's Russia, there can be no room for dissent.
