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Home  »  Russia  »  Economics

The Russian government intends to lift the transport tax from next year.

Road Fund would be replenished by increasing excise taxes on gasoline and other charges.

The Russian government plans in 2011 to abolish the transport tax. The statement was made Vice-Premier Sergei Ivanov said at a meeting of the governmental commission on transport and communications.

Highway Fund, through which repaired and built roads, will be expanded by increasing excise taxes on fuel and paid passage of heavy vehicles for federal roads.

According to Deputy Prime Minister Sergei Ivanov, this news will please many motorists who, for whatever reasons, rarely operate their vehicles. In addition, the increase in excise taxes on petroleum products, from which will finance road construction, as well as tolls on public roads, is generally accepted world practice.

Ministry of Finance, on behalf of the government, already counts the economic benefits of such substitution. In 2009 Russia received from the transport tax 62 billion rubles. According to the Ministry of Finance, to collect the excise payments easier, as increased excise tax would pay refineries, and then include the costs in the price of their products.

According to the Federal State Statistics Service, with the beginning of the year, consumer prices for petrol in the middle of Russia increased by 1,8%. According to preliminary calculations, if the excise tax increase is twice the price of petrol could rise by 15%. Given that the cost of gasoline is laid in many products and services for new roads and pay those who do not have cars. In particular, with rising fuel will increase fares on public transport.

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