MinFin opposes idea of introducing floating excise tax rates on fuel
MOSCOW. March 23 (Interfax) - The Russian Finance Ministry does not support the idea of introducing floating excise tax rates on fuel as a function of the oil price, as previously proposed by the Federal Anti-Monopoly Service (FAS) and the Energy Ministry, Deputy Finance Minister Sergei Shatalov told journalists.
"We are categorically opposed. We had our latest discussion on this issue the day before yesterday. The Finance Ministry and Economic Development Ministry are against it," he said.
In the middle of March, the Energy Ministry and FAS proposed introducing a system of floating excise duties on automobile gasoline bound to world oil prices. Energy Minister Sergei Shmatko said that floating rates would provide several possibilities for eliminating fluctuations on the domestic market.
Previously, the FAS proposed returning excises on automobile fuel to the level preceding the excise increase once the world oil price reaches $130 a barrel. The Economic Development Ministry was skeptical of the idea of lowering excises in the case of a growth in world oil prices, since based on experience, prices usually rise once taxes increase but do not fall if taxes are later reduced, Economic Development Minister Elvira Nabiullina said.
At present, excise taxes for gasoline are indexed as a function of fuel class. For gasoline below class 3, the excise rate has been 7,725 rubles per tonne since January 1 of this year. Starting on July 1, it will be 8,225 rubles; in 2013 - 10,100 rubles; and in 2014 - 11,110 rubles.
For class-3 gasoline, the 2012 excise tax is 7,882 rubles per tonne. For 2013, it is 9,750 rubles, and for 2014 - 10,725. Class-4 gasoline has an excise rate of 6,822 rubles per tonne this year, 8,560 rubles in 2013 and 9,416 rubles in 2014. For class-5 gasoline, excise taxes have been proposed at 5,143 rubles for 2012 and 2013, and 5,657 rubles in 2014.