Excise Taxes on Gasoline Increased in Russia
OREANDA-NEWS Excise rates on fifth-class gasoline and diesel fuel in Russia from January 1, 2019, after a decrease in mid-2018, returned to growth, eventually increasing by 1.5 times.
The tax code provides for an increase in excise rates for gasoline by 4.1 thousand rubles, to 12.314 thousand rubles per ton, for diesel fuel — by 2,876 thousand rubles, to 8,541 thousand rubles per ton. Rates increased from January 1 and will remain so until the end of the year.
In 2018, excise taxes were planned to be raised twice a year - from 1 January and 1 July. However, fuel prices began to rise sharply in the first half of the year. For example, gasoline prices at gas stations from January 39.9 rubles per liter in the country increased to 43.43 rubles per liter by June 4. One of the reasons for the rise in prices called excise.
At the end of May, the government instructed to reduce excise taxes. The authorities refused their growth from July 1 (for gasoline — 679 rubles per ton and diesel — 593 rubles per ton). In addition, the Cabinet decided to reduce excise duties from June 1 — for diesel fuel for 2 thousand rubles per ton of existing gasoline — 3 thousand rubles.
It was noted that from January 1, 2019 excise taxes will return to the level planned before all mid-year adjustments. The increase in excise taxes, according to the authorities, will not lead to an increase in fuel prices due to the tax decisions. One of the main tools for price adjustment will be the so-called damping mechanism designed to smooth out sharp price fluctuations.
It will be applied until the wholesale price of gasoline and diesel fuel is equal to the established base plus 10% (above this level it is reset). When the actual price will be within these limits, the state compensates companies 50% (in 2019 — 60%) of the difference between it and the higher export price. At a lower export price, these 50% of the difference will be paid to the state. For 2019, the basic level for gasoline is 50.4 thousand rubles per ton, diesel fuel — 45 thousand rubles.