For the first time in the world, a new type of tobacco product—papyrosy—was created in Russia. The appearance of papyrosy in the Russian tobacco industry caused a sensation and a true revolution in the domestic tobacco business; the first mention of papyrosy is dated April 29, 1844, in a circular of the Ministry of Finance of the Russian Empire.
In the Russian Empire, there were tobacco excise stamps (excise bands) issued from the mid to late 19th century, printed on a thin, long strip, used to seal a pack or package of makhorka, tobacco, papyrosy, or cigarettes; it was impossible to open the band on the package without tearing it.
The band guaranteed the authenticity of the tobacco factory’s product being sold and indicated that the excise had been paid to the government, although excise duties already existed in many countries at that time.
In 1727, the free sale of tobacco was permitted, with a duty of 1 kopeck per pound.
In 1749, the tobacco monopoly was reinstated.
In 1762, a system of free tobacco sales was established and tobacco was exempted from tax—until the end of the 1830s of the following century.
In 1838, under the “Monetary Reform” (1839–1843) of E. F. Kankrin, Minister of Finance of the Russian Empire, tobacco again became subject to mandatory excise: “The manufacture of tobacco, as an item pertaining to the demands of luxury, may, without any constraint upon the people, be subject to a moderate excise.” The key words in this phrase, taken in context, are “luxury” and “moderate.”
In 1887 (on the basis of the Tobacco Statute), smoking tobacco was subject to excise collection: per 1 pound (0.453592 kg)
1st grade — 90 kopecks
2nd grade — 48 kopecks
3rd grade — 18 kopecks
Snuff — 48 kopecks
makhorka — 8 kopecks
For each 100 pieces:
cigars, 1st grade — 100 kopecks
2nd grade — 30 kopecks
papyrosy, 1st grade — 20 kopecks
2nd grade — 9 kopecks
On November 24, 1917, No. 169. Decree of the Council of People’s Commissars “On the new excise tariff and maximum retail prices for tobacco products.”
Papyrosy made from banderolled tobacco in papyrosy workshops (Digest of Laws, vol. V, Statute on Excise Collection, art. 897; as amended in 1912) are subject to bands costing four rubles per thousand pieces.
Signed: Chairman of the Council of People’s Commissars V. Ulyanov (Lenin).
Excise duties in Russia (after their abolition by the Soviet government in 1930) were reintroduced with the beginning of market reforms in 1992.