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Belarusian Finance Ministry considering scrapping excise tax on automobile fuel

June 20/ 15:29

Minsk. The excise tax on automobile fuel may be scrapped, BelTA learned from a recent interview of Belarusian Deputy Finance Minister Dmitry Kiyko with the Finance, Accounting, and Audit magazine.

The deputy finance minister said: “We now recognize as a possibility that the state budget may lose considerable revenues within the next 3-5 years and are working out measures to minimize these risks. The greatest challenges include the end of the ‘tax maneuver' in Russia coupled with the refusal to tax the export of oil and oil products. We expect oil export payments to the tune of Br1.3 billion or 1.2% of the GDP in 2018. In 2017 the figures were Br1.8 billion and 1.7% of the GDP respectively. The other challenges include the need to take domestic compensatory measures to keep the oil processing industry operating effectively. In order to keep retail fuel prices at a level the economy and the nation can afford, we may have to scrap the excise tax on automobile fuel, thus losing some 0.7% of the GDP.”
 

Apart from that, the Belarusian Finance Ministry is concerned about the fact that in 2019 Russia will stop transferring financial assets as part of the oil and gas industry arrangements. The state budget will start getting less dividends from state-owned companies due to the possible corporate management reform in the public sector, the more prominent role of supervisory boards, and the sale of state assets to investors. “In this situation the acquired profit will be considered primarily as a source for developing these enterprises. If all the mentioned risks come to be, the gap in state budget revenues in the medium term may reach 3.8% of the GDP. Or Br4.3 billion in absolute terms at present,” said Dmitry Kiyko.

The deputy finance minister underlined that the comprehensive revision of the Tax Code is becoming so important in view of the abovementioned considerations.

 

The excise tax on automobile fuel may be scrapped, BelTA learned from a recent interview of Belarusian Deputy Finance Minister Dmitry Kiyko with the Finance, Accounting, and Audit magazine.
Read full text at: http://eng.belta.by/economics/view/belarusian-finance-ministry-considering-scrapping-excise-tax-on-automobile-fuel-112785-2018/
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