The FAS Russia negatively assessed the plans of the Ministry of Finance to introduce an excise duty on “harmful products”

The FAS Russia negatively assessed the plans of the Ministry of Finance to introduce an excise duty on “harmful products”


MOSCOW, 11 February. The Federal Antimonopoly service (FAS) of Russia has negatively assessed the plans of the Ministry of Finance to introduce an excise tax on “harmful products”, said the head of the control of the chemical industry and the agro-industrial complex of the FAS Anna Microcinema.

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“FAS Russia has a negative attitude to this initiative. The introduction of excise tax will inevitably lead to higher prices for products using palm oil,” said it is the position of the Agency.

Microcinema reminded that there are acceptable norms in which it is acceptable to use palm oil in production. Information about the presence of palm oil must be indicated on the packaging. Over all this should follow the CPS, said the official.
“And the consumer should have the right to choose to buy cheap products, but with the use of palm oil, or to spend more, but to buy products with better fats,” added Microcinema.

Earlier it was reported that the Finance Ministry is considering the option of specific excise rate in roubles per ton of palm oil. Also the Finance Ministry is considering additional taxation of beverages with high sugar content and chemical essences. Such measures are recommended by the world health organization (who), including for the purpose of combating excessive consumption of sugar and related diseases.

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Rate of excise duty on palm oil will be calculated by the Ministry of Finance in rubles per ton

The health Ministry first issued a proposal to introduce excise duties on a range of products with a high content of fat and sugar. The feasibility of introducing excise duty was also supported by the Ministry of agriculture. The first Deputy Minister of agriculture Eugene Gromyko, unlike the position of the FAS, believes that the introduction of this excise tax will not lead to a rise in food prices. According to Gromyko, much greater influence on prices are factors such as the requirement to equip cars with tachometers (measuring instrument designed to measure the frequency of rotation of the unit – approx. ed.) and some other innovations.

However, the Finance Ministry does not deny that the excise tax on palm oil could affect all food products in the production of which it is used, including chips.
Palm oil is often used by dairy producers and bakers to reduce the cost of production. This oil is made from the fruit of the oil palm. According to Rosstat, the supply of palm oil to Russia for the first 9 months of 2015 increased by 31.7% compared to the same period in 2014.