The Russian brewer Baltika failed in its attempt to bring a lawsuit against the country's tax authorities, Baltika said. The Baltika's lawsuit against the tax authorities was trown out by the Court of Arbitration in Moscow. The lawsuit was brought along with similar but separate suits from rival brewers ZAO Ochakovo and ZAO Vena. They claimed against Vladimir Gubanov, head of the department of alcohol and tobacco taxation at the Tax Ministry, for ”undermining investment in Russia's beer industry”.

The suits were filed after Gubanov told a press conference in April that it was essential to raise excise duty on beer so that the government can increase revenue.

"The court hearing Tuesday lasted one hour and a half, but the court refused to consider the explanations of the brewers and preferred to support the authorities,” Baltika said. Vena's case was thrown out last week. Ochakovo's case will be heard on August 14th.

The Russian tax authorities raised excise duty on beer by 25% at the beginning of the year and are planning to raise it by another 15% next year.

08 August, 2003