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Press release, 05.07.2000


Yabloko insists that the increase in excises on oil products should not be as significant as planned by the government

The Yabloko faction plans to insist that the increase in excises on oil products should not be as significant as the amount planned by the government.

Such a decision was adopted at a meeting of the faction on July 4 on the threshold of votes on another article from Part II of the Tax Code. The government plans to raise excise duties on oil products to compensate for the abolition of turnover taxes.

According to the Yabloko faction, the abolition of the turnover tax is absolutely necessary, as it is collected, irrespective of the actual profitability of production, the size of profits, etc. This tax serves as a "punishment" on technologically well-developed products.

The estimates of Yabloko's experts demonstrated that the government assessments will lead to a re-compensation of losses from the abolition of the turnover tax. The faction believes that an excessive increase in excises will not only affect ordinary motor-car enthusiasts, but will also will lead to a severe increase in the prices of oil products, which will generate an additional surge in inflation.

Deputies from the Yabloko faction, Mikhail Zadornov and Alexei Mikhailov, submitted to the Budget Committee and the Government proposals to increase the excise duties on low octane petrol only 3.7-fold and not 6.5-fold, as was proposed by the government, and in the case of high-octane petrol 4-fold, rather than the 6-fold recommended government increase(these figures have been rounded up).

At the meeting of the faction Alexei Mikhailov stressed that this position of the government had nothing to do with "concern for oil-sector workers,this is the issue of the final price for consumers", as the increase in petrol excises will immediately affect prices". The scheme proposed by Yabloko will lead to an increase in petrol prices of 100% on average, rather than 125%.

During discussions of this issue at Budget Committee meetings, the government partially acknowledged that its calculations were inaccurate. At the same time Yabloko thinks that this is only an intermediate victory and Yabloko will try to achieve an adoption of real values by the government.