The Committee on Taxation and Customs Policy recommends that the Parliament adopts as a Basis the Bill on Amendments to the Law "On the Rates of Excise Duty and Import Duty on certain Goods (Production)" (re Financing of Road Infrastructure Development to reduce Overexpenditures of Fuel-Oil Materials by the Road Traffic Participants due to the Low-Speed Conditions)

27 November 2009, 11:25

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The Bill (Reg.№5285) envisages increase of the excise duty rate from 1 January 2010 on motor petrol from EUR 110 to 180 per 1000 kilogram; it also concerns overhead products (form EUR 30, 45, 50, 65 to 55, 80, 95, 120 per 1000 kilogram)

 

During the sitting of the Committee the members explained the necessarily of the Bill adoption by the fact that ‘the scope of taxes and charges imposed on the roadways users and are aimed at the improvement of the roads conditions are considerable lesser that the expenses on the roads technical conditions preserving and are  insufficient to constantly maintain it. It resulted in the fact that during last years the rate of the roadways sphere financing is only 30% from the sufficient sum."

 

Members of the Committee pointed out the attention on the fact that the adoption of the Bill probably would lead to rise in price on these goods hence it would result in negative impact on this market functioning.

 

S. Teriokhin emphasized that according to the article 1 of the Law "On Taxation System" amendments and additions to the Laws on taxation are introduced not later then 6 months until the new budget year starts.

 

Moreover the Committee expressed warming regarding the increase of the excise duty rates for the enterprises of agricultural and housing-communal sphere.

 

During the elaboration of the Bill for the second reading these issues should be normalized.