The Ministry of agriculture: introduction of excise tax on “harmful products” will not lead to a rise in food prices

MOSCOW, 8 February. Discussing the introduction in Russia, excise taxes on so-called harmful products will lead to higher food prices. Such opinion today to journalists was expressed by the first Deputy Minister of agriculture Eugene Gromyko.

“We don’t think it (the introduction of excise taxes) would lead to higher prices,” said Gromyko.

In his opinion, price growth is much more affected by some of the changes in the industry. “Much more affected by the load on the axle, tachometers, etc.,” he said.

As previously reported, the healthcare Ministry has taken the initiative to introduce excise duties on a range of products with a high content of fat and sugar. In particular, such goods can be attributed to soda and products which contain palm oil.

The Minister of economic development Alexei Ulyukayev confirmed that the government is discussing the issue of increasing excise taxes on palm oil and harmful products. The head of the Ministry of agriculture and Ministry of industry and trade endorsed the initiative.

The excise tax can be introduced from 1 July 2016, said Finance Minister Anton Siluanov.

On 6 February, a source in the financial – economic bloc of the government of the Russian Federation said that the imposition of excise tax on soda at the rate of 20% of the cost of the product may bring the Russian budget additional revenue of 600 million rubles a year.

Currently, the list of excisable goods include alcohol and certain types of alcohol products, tobacco, automobile and aviation fuel, motor oil, cars and powerful motorcycles.