Duma adopted amendments to the Budget Code in the 1st reading

#industry news

Deputies of the State Duma approved amendments to the Budget Code in the first reading, which are aimed at distributing excise tax revenues between the federal and regional budgets. The draft law has been published in the electronic database of the lower house.

The explanatory note to the bill states that all additional income that arose due to the introduction of a progressive scale of the tax rate (more than 13%) will be directed to the federal budget.

An increase in the tax rates on mining, in particular, on potash salts and iron ore, will lead to an increase in revenues to the federal and regional budgets. Now, according to the relevant standard, revenues are distributed as follows: 83% goes to the federal budget, and 17% goes to the budgets of the regions of Russia. The deputies proposed to leave this standard unchanged in order to compensate for possible shortfall in income tax revenues of the regions. A similar standard applies to the excise tax on natural gas produced for the production of ammonia.

According to excise taxes on tobacco products, nicotine and nicotine-containing raw materials, it is proposed to transfer revenues to the federal budget according to the standard of 100%. Exactly the same standard, according to the document, will apply in terms of excise taxes on pharmaceutical substances of ethyl alcohol.

On June 18, it became known that the Budget and Taxes Committee recommended that the State Duma adopt in the first reading a federal law that introduces large-scale amendments to the Tax Code (NK). In particular, the amendments imply an adjustment of the tax rates on mining. For the "iron mining" industry, it is planned to increase the mineral extraction tax by 1.15 times, and for the "production of mineral fertilizers" (potassium) industry, it is planned to increase the mineral extraction tax by 2.3 times.