The Commission of the State Council of the Russian Federation in the field of Economics and Finance proposed to send part of the excise taxes on tobacco to regional budgets. This was reported in the press service of the government of the Chelyabinsk region.
"The participants of the commission's meeting reviewed the draft federal law on state regulation of the production and turnover of tobacco products, tobacco and nicotine-containing products, as well as raw materials for their production. A proposal was made to send part of the tobacco excise taxes to regional budgets," the statement said following a meeting of the State Council Commission of the Russian Federation.
This will help the regions to increase revenues, fight counterfeiting more effectively and legalize the tobacco market, which will eventually increase tax revenues to both federal and regional budgets.
"The bill is aimed at solving the problem of the gray tobacco market. Licensing will help to combat counterfeiting. The federal structure will handle wholesale trade, while the regional authorities will handle retail trade. There is a common understanding of the necessity of this law. Duties will also be paid to regional budgets. The discussion is about tobacco excise taxes. We propose a certain allocation to regional budgets. The discussion with the Ministry of Finance continues," said Alexey Texler, head of the State Council Commission on Economics and Finance, Governor of the Chelyabinsk Region.
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