On submitting a draft law on excise duties for 2014 – 2016 to the State Duma

The draft law On Introducing Amendments to Article 193 of Part 2 of the Tax Code was prepared by the Ministry of Finance.

The draft law sets duty rates on excisable goods for the period of 2014-2016.  The excise duty rates for 2014 and 2015 will remain the same, excluding those on petrol in the 4th and 5th classes.   

The excise duties on petrol in the 4th class will be raised by 5% in 2014 and 2015, while the rates for the 5th class fuel will be raised by 12% in 2014 and by 11% in 2015.

In 2016, the duty rates on 5th class diesel fuel will increase by 14% and on 5th class petrol by 20%.

The excise duties on alcohol-containing products and alcohol products with a total ethanol content over 9% and below 9% will be raised by 10% in 2016.  

Rates for other types of alcohol drinks, including beer, wine and sparkling wines, will be adjusted to the estimated level of inflation (5.4%).

The minimal excise duty on cigarettes in 2016 will increase by 28%.

Additional revenues to the consolidated budget will amount to:

- in 2014: 17 billion roubles, including 4.8 billion roubles to the federal budget;

- in 2015: 23.8 billion roubles, including 6.7 billion to the federal budget;

- in 2016: 311.4 billion roubles, including 169.9 billion to the federal budget.

The draft law was debated and approved at the Government meeting on June 17, 2013.