Putin raised the excise tax on gasoline

“Federal law in article 193 of the Tax code of the Russian Federation amended, according to which from 1 April 2016 raise the tax rates of excises on automobile gasoline, diesel fuel, straight-run gasoline and middle distillates”, — stated in the message issued by the press service of the Kremlin.

President signed the document was adopted by the State Duma on February 26. It provides for an increase in the excise duty on diesel from 1 April 2016 to 2 rubles. per liter (10 to 130 thousand rubles per tonne), diesel fuel — by 1 ruble. per liter (5 to 293 thousand rubles per ton).

According to experts of the Ministry of Finance, as a result of increasing excise rates retail price of gasoline could rise by 6.5–7%.

That the Ministry of Finance proposed the second time this year to raise excise taxes on fuel, wrote on 3 February. A source in the Finance Ministry explained that the aim is to increase revenues because of the deficit caused by low oil prices.

“In the current very difficult budgetary situation, this is the only way to replenish road funds,” — said the official representative of the Ministry. “If oil prices will return to growth, we will offer to return to the former rates of excise taxes or reduce them,” he promised.

Additional revenues from increased fuel excise, the Ministry of Finance, financial and economic feasibility of the bill, estimated at 2016 at 89.3 billion rubles.

“This is a forced measure. The proposed additional increase in excise taxes is one solution among others to mobilize revenues of the Federal budget. The government will use its power to reduce the deficit,” Zubarev said, noting that if current world prices for energy carriers in 2016 the volume of shortfall in income may exceed 2 trillion rubles.

The last time twice a year in fuel excise taxes increase in 2013, then they were increased first in January and then in July. Assessment of Rosstat, in 2015, inflation in Russia amounted to 12.9%, gasoline prices rose 4.8%.