27 Jul 2009 12:59

Federal budget to get extra 28 bln rubles from excise hike for tobacco industry in 2010

MOSCOW. July 27 (Interfax) - The Russian federal budget could receive an additional 28 billion rubles in 2010 from a hike in excise taxes for the tobacco industry, a source at the Finance Ministry told Interfax.

The government has agreed to an accelerated hike in excise taxes on tobacco products compared to the planned growth rates, the source said.

The 2009-2011 budget envisioned annual growth of 0.5 percentage points in the ad valor excise tax rate and a 20% increase in the specific rate. "They decided not to touch the ad valor rate and increase the specific rate additionally," the source said.