Moscow, June 7 - Russia may examine scrapping a 5 percent import tariff on unpacked black and green tea to stimulate domestic packaging and exports, the government and tea industry lobby Rusteacoffee said on Wednesday.
A rise in domestic tea packaging would increase investment in the sector, including plant construction and repairs, as well as bringing new taxes to the state, the Ministry of Economic Development and Trade said in a statement, quoting Rusteacoffee.
"Last year, Russia's tea market was equal to 170,000 tonnes, of which 80 percent was imported in unpacked form. This included about 7,000 tonnes packed in Russia and exported to our neighbours, like Ukraine and Kazakhstan," Rusteacoffee General Director Ramaz Chanturiya told Reuters.
"If the tariff is lifted, exports could rise by 15,000-20,000 tonnes and imports by the same amount. We hope the government will support us, otherwise new tea packaging plants will be built in Ukraine and Kazakhstan instead of Russia," he said.
Rusteacoffee has been lobbying for an increase in domestic packaging. In 2003, the government agreed with the lobby's proposal to double to 0.8 euros per kg a minimum import tariff on tea in teabags.
The basic rate of the tariff on teabags is 20 percent of the customs value.
Rusteacoffee expects the share of tea in teabags to rise to 35-40 percent in 2008 from around 30 percent in 2005 and 24 percent in 2004.
"However, in big cities consumption of tea in teabags is over 50 percent already," Chanturiya said.
Over 90 percent of tea consumed in traditionally tea-drinking Russia is black tea imported mainly from Sri Lanka, India, Indonesia, China, Kenya and Vietnam.