From January 1, 2014 petrol, tobacco and alcohol beverages prices to go up

Russian President Vladimir Putin has signed the law to index the excises of gasoline, alcohol beverages and tobacco from January 1, 2014. The amendments to the Tax Code, which will enter into force on January 1, 2014, will define the excise rate for 2014-2016, reported the presidential press office.

It was earlier reported that after excises go up in 2014 payments to the consolidated budget to increased by 17 billion rubles and in 2015 – by 23.8 billion rubles.

According to the document, the current oil products excises (except for 4th and 5th class gasoline excises) will remain the same. In 2014 the 4th class petrol excises will increase by 5.3% - up to 9,916 rubles per 1 ton and in 2014-2015 – up to 10,858 rubles per 1 ton (+4.8%).

The 5th class petrol excises is expected to be increased up to 6,450 rubles per 1 ton (+12.1%) in 2014, up to 7,750 rubles per 1 ton (+11%) in 2015 and up to 9,500 rubles per ton (+20%) in 2016.

The additional indexing of diesel fuel excises is not planned in 2014-2015. In 2016 the excises will remain at the level of 2015, except for the 5th class diesel fuel, which is planned to be increased by 14%.

At the press conference in RBC Anatolii Golomolzin, deputy chief of the Federal Anti-monopoly Service (FAS), said that in 2014 pace of growth of petrol prices in Russia will be equal to the inflation rate. Among the important reasons of fuel price growth he called rise in excises.—0—