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Monday, March 19, 2018

“Anti-crisis plan in action: the petrol price will rise before April 1”

The state Duma will adopt the law in three readings on February 26. The Ministry of Finance believes that as a result the fuel price will rise by the end of the year is “negligible” – on 2,36 rubles per liter. The deputies are sure that prices will start to grow before April 1.

photo: Mikhail Kovalev

This bill is one of anti-crisis measures proposed by the government, and is of a purely fiscal nature. It is expected to raise rates of excise duties per tonne on gasoline that does not meet the class 5, and straight-run gasoline by 24.8% from April 1, 2016, and 26.8 percent for the whole year 1917. The excise tax on gasoline grade 5 in 2016 will rise by 34.5%, and in 2017 – by 27.4%. The excise tax on diesel fuel and middle distillates from April 1 will increase by 27.5%, while next year – by 28.9%.

In the opinion of the Committee on budget and tax stated that the excise duties on those excisable goods, which can be used in the illegal production of other excisable goods (for example, straight-run gasoline in the production of motor gasoline), or in schemes for the evasion of excise taxes by the sale of counterfeit fuel (for example, when diesel fuel is sold under the form of middle distillates), “to prevent interest in the application of these schemes proindeksirovany in equal amounts”.

State Secretary, Deputy Finance Minister Yury Zubarev at a meeting of the Duma Committee on budget and taxes said that “the excise tax is not more than 30% in the price of gasoline, so the increase in excise tax will affect the final cost of fuel slightly — it will rise by 2.36 rubles by the end of 2016, i.e. 6.5% of the current cost of gasoline and below the level of inflation”. Growth in gasoline prices for consumers, the Finance Ministry expects in the third quarter of 2016, and by this point, I think in the Finance Department, manufacturers will pass the increased cost of the excise tax on consumers.

“The increase in excise tax – a measure of mobilization, the government is looking for all possible sources of replenishment of the budget,” said Zubarev. According to him, the government is now necessitive in the budget of about 1.3 trillion rubles, and the producers of gasoline due to the change of the ruble sell it on European markets at the price of 2000 rubles. per ton higher than last year.

The deputies asked, do not violate the proposal promised by the President in address to the Federal Assembly a moratorium on changing tax conditions and the tax increase for business. Mr. Zubarev said no.

The Chairman of the Committee on budget and taxes Andrey Makarov (“EP”) proposed to adopt the law in the first reading on Friday. The Deputy is sure that petrol prices will start to rise even before the entry into force of law from 1 April. Besides the increase in excise duty will affect the cost of agriculture and the army, but the government, no calculations of possible consequences of implementation of proposed measures in the explanatory note to the bill it is not provided, said Mr. Makarov…


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