State Duma: Constituencies To Keep 80% of Excise Duty Payments

16 November 2018 (09:47)

UrBC, Moscow, November 16, 2018. Russia’s State Duma adopted (in the third reading) a number of adjustments to the Budget Code to make sure that federal constituencies get to keep 80% of excise duty payments on strong drinks, the Duma’s website states. Besides, the consciences will also be able to keep up to 100% of excise duty payments on oil/mineral products within their own local budgets.

As of now, the local budgets only get 50% of excise duty payments on strong drinks with over 9% alcohol content. It was decided that the percentage should go up to make up for the federal consciences’ losses once businesses stop paying property tax starting next year. The redistribution of the revenues in question will bring local budgets RUR 58.9bn in 2019 and as much as RUR 75.3bn by 2024.

As for excise duty payments on oil/mineral products, the federal constituencies will get to keep 66.6% of these in 2010, 74.9% in 2021, 83.3% in 2022, and 91.6% in 2023. Starting January 1, 2024, they’ll get to keep 100% of the total amount within their budgets. Next year’s revenues are estimated at RUR 57bn; these are expected to reach RUR 355bn by 2024.

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