Deputy Finance Minister Sergey Shatalov says excises on alcohol, alcohol drinks, beer and cars will go up 7 percent in 2008, 6.5 percent in 2009 and 6 percent in 2010 to match the level of anticipated inflation.
Photo: Dmitry Azarov
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Govt to Cash In on Bad Habits
The Russian government on Thursday has endorsed a plan to raise excise dues on alcohol, cigarettes and cars within the next three years. Excises on fuel will remain the same to contain inflation. Ministers also decided not to differentiate excise rates for gasoline depending on the quality of fuel. Thus, smokers will have to pay for drivers’ benefits as dues on tobacco will be growing 20 percent every year.
Indexation of excises is the only new measure to be found in a taxation strategy which is now under consideration in the government. Deputy Finance Minister Sergey Shatalov presented the draft on Thursday, saying excises on alcohol, alcohol drinks, beer and cars will be increased by 7 percent in 2008, 6.5 percent in 2009 and 6 percent in 2010 to match the level of anticipated inflation. Excises on cigarettes and other tobacco goods will be growing some 20 percent every year. The Finance Minister has calculated that the price of a pack of cheap cigarettes will go up 1.5 rubles as a result. More expensive brands will cost 3 rubles more every year.
Pressed by the Economic Development Ministry, financial officials have given an idea of indexing fuel excises in 2009 and 2010. Fixed excises are expected to contain fuel prices and, as a result, trend down inflation. At the same time, the Financial Ministry says Russia will lose about 9 billion rubles in 2009 and almost twice as much in 2010 with fuel excises at the fixed levels.
The Finance Ministry, however, declined to satisfy another demand of German Gref and link rates of gasoline excises with the fuel’s quality graded under Euro-2, Euro-3 and Euro-4 standards.
www.kommersant.com
All the Article in Russian as of Mar. 30, 2007
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