The Ministry of Finance of the Russian Federation found a way to cover the state’s expenses on overcoming the consequences of the coronavirus pandemic, the department has prepared the necessary package of amendments to the Tax Code, RBC reports.
It is specified that the Ministry of Finance proposes to increase excise rates on cigarettes and tobacco products by 20% from 2021. The prepared document was approved by the commission on legislative activity, now it will be submitted to the Cabinet of Ministers for consideration.
The explanatory note indicates that an unscheduled increase in excise taxes will allow the state to ensure the fulfillment of social obligations in the face of increased budgetary expenditures to overcome the economic consequences of the pandemic. In the future, the excise rate will be indexed as standard, taking into account the inflation forecast.