Vladimir Mishelovin: smart public regulation is an insurmountable barrier for the unlawful segment, while excessive regulation is a tempting drive

On 22 September 2017, Head of FAS Fiscal Control Department, Vladimir Mishelovin took part in the “Alcohol market: from prohibitions to development” Forum

The panel session on “Illegal alcohol market: an exaggeration or a dangerous reality?” discussed retail regulation, the prospects of legalizing on-line trade and the excise policy.

Vladimir Mishelovin commented about the positive effects of implementing the Unified State Automated Information System (USAIS), and explained how excises can be used for economic stimulation of the authorities at the level of the subjects of the Russian Federation to combat counterfeit. He pointed out favourable prospects for developing trading with other food products if on-line alcohol trade is legalized.

Vladimir Mishelovin emphasized that tightening regulation without evaluating the consequences can decrease the number of market players, increase economic concentration and destroy small and medium businesses. In the worst case scenario, push up the scope of illegal and counterfeit goods.

Summing up the discussion, Head of FAS Department stated: “In our opinion, to counter the illegal alcohol market, institutional preconditions must be created to inform consumers about the quality and properties of the goods and to guarantee a favorable working environment for bona fide market participants”.