Report
09.02.2016
Tyres may be included into the list of goods on which the government intends to impose an excise duty. Market participants fear that this could lead to higher prices.
According to the information received by RBC from a government official, tyres may be included into the list of goods on which the authorities intend to impose an excise duty. “We discussed three items in total - palm oil, soft drinks and tyres,” he said.
Chairman of the Board of the Tyre Manufacturers Association & the CEO of NokianTyres Russia, Andrey Pantyukhov, told RBC that he knew about the possible introduction of excise duties on tyres and that this issue is being discussed by the government. During an economic crisis, when new car sales are plummeting and the purchasing power of citizens is falling, the introduction of excise duties will lead to a new rise in prices and an even greater contraction of the market, he warned, and this would lead to a reduction in staff and tax revenue.
Mr Pantyukhov also noted that cars are already classified as excise goods and the introduction of additional excise duty on one of its components will be excessive.
On February 5, Vedomosti newspaper published an article that the government decided to expand the list of excisable goods to include palm oil and carbonated drinks. The sources asserted that the idea was supported by President Vladimir Putin.
Among other “harmful products” mentioned in the article were products with high fat and sugar content according to the World Health Organization (WHO) methodology, as well as electronic cigarettes.
The Government’s idea found support in the Ministry of Agriculture. Speaking at the United Russia congress, the Head of the Ministry, Aleksandr Tkachev, said that counterfeit products, including those using palm oil are destroying the Russian food market.