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Official: Russia Scraps Vodka Tax Hike

Russia has reportedly scrapped a move to raise taxes on vodka.

Reuters quotes Dmitry Peskov, a spokesman for Prime Minister Vladimir Putin, as saying that the idea was abandoned in a closed-door session earlier this week.

Peskov said a rise would have "many negative side effects, including an increase in counterfeit alcohol production, which poses a threat to people's health."

The vodka tax is the latest idea to be rejected after lawmakers in the lower house rejected an income tax hike and the introduction of a luxury tax.

-- Reuters