Putin argued, Dietrich additional funds from excise duties :: Policy :: RBC

The proposal of the head of the Ministry of transport Eugene Dietrich on the collection of additional funds from excise taxes to the road Fund has not found support with Vladimir Putin. “We agreed that the money will go directly to the regions”, — said the President

Eugene Dietrich

(Photo: Sergey Bobylev / TASS)

At a state Council meeting in Vladivostok, President Vladimir Putin supported the proposal of the Minister of transport Eugene Dietrich to accumulate additional funds from excise taxes in the Federal road Fund before distributing them in the regions.

“Our proposal of the Ministry of transport is to concentrate additionally coming from the excise funds to the Federal road Fund and the special distribution, on a special mechanism to bring them to the regions”, — said Dietrich.

The President responded by asking who will control the distribution of these funds. “You can, of course, and through Federal funds. We agreed that the money to the regions will go directly. And so — through Federal funding you collect them, and who will control where to send them? So I don’t think it’s a good idea. We let the money still in the regions shall direct, and Federal road Fund, let them control the use of the money. I think it must be done”, — Putin said.

In addition, the President said about inaccuracies in the speech of the Minister. “You said you transported to the region at a flat rate million. I have other data in 2017 transported at a flat rate of 530 thousand people, the forecast for 2018 of 900 thousand,” — said Putin.

After these words, President Dietrich checked the papers and confirmed the rightness of the President. “It is necessary that we understand exactly what results we achieve in the course of practical work”, — said Putin.

Video: Russia 24

On 19 June, the government published draft amendments to the budget code in connection with the “need to compensate the budgets, falling revenues from excise duties” due to the reduction of the excise tax on gasoline.

In the period from 1 July to 31 December 2018 proposed list of 15.59% excise tax to the Federal budget, 84,41% — in regional budgets. From 1 to 31 January 2019 the Federal budget will transfer 13 and 35% of revenues from excise duties and regional budgets — 86,65% from 1 February to 31 December 2019 at a ratio of 41.9% and 58.1 per cent respectively. In the current legislation, in 2019 the ratio laid down by 41.9% — to the Federal budget and 58.1 per cent to the regional budgets.

President Putin approved the amendments on 19 July 2018.

At the same time the Deputy head of the Ministry of Finance Ilya Trunin said that the total losses of the budget by reducing excise duties on petrol and diesel will be up to the end of 2018 103 billion. He noted that although revenues from excises the regions and the Federal centre share among themselves in the ratio of 60:40, all the losses from the reduction in excise will take over the Federal budget.

“That will be presented in the amendments to the Budget code, the entire amount of [103 billion roubles] will fall on the Federal budget,” — said Trunin, noting that the loss of regions is expected to be offset by changes in the regulations on depositing excise taxes.

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