TY - JOUR

T1 - Changes in beer excise tax levying

T2 - Consequences for budget and regional development (case of St.Petersburg)

AU - Pogorletskiy, Alexander

N1 - Publisher Copyright: © 2016, Editorial Board of the Journal Economic Policy.

PY - 2016

Y1 - 2016

N2 - The gradual increase of excise duties on beer provided under the Law on indexation of excise rates in the years 2015-2017 aims to reduce beer consumption by population and to contribute to the growth of related tax revenues for regional budgets. However, the issue of increasing excises on beer' rates is not so clear. On the one hand, with the decline in consumer activity of the population during the crisis period, the brewing industry will be under attack with the evident consequence of reducing tax revenues to the regional budget. On the other hand, the "grey" schemes of beer import from the EAEU are beginning to appear in Russia, as well as the switching of low-income groups to poor-quality alcohol, including surrogates. In addition, the desire to withdraw the administration of excise taxes on beer from the regional level to the federal one does not meet the objectives of sustainable development of regions, especially St. Petersburg as the largest metropolis in North-West of Russia. The article discusses the following issues: the role of excise taxes on beer for the regional budget revenues formation in Russia, the impact of excise taxes on beer increasing on their collection rates in the current conditions, as well as the increase in the consumption of other types of alcohol; and the prospects of a partial transfer of administration of the excise taxes on beer from regional budgets to the federal one.

AB - The gradual increase of excise duties on beer provided under the Law on indexation of excise rates in the years 2015-2017 aims to reduce beer consumption by population and to contribute to the growth of related tax revenues for regional budgets. However, the issue of increasing excises on beer' rates is not so clear. On the one hand, with the decline in consumer activity of the population during the crisis period, the brewing industry will be under attack with the evident consequence of reducing tax revenues to the regional budget. On the other hand, the "grey" schemes of beer import from the EAEU are beginning to appear in Russia, as well as the switching of low-income groups to poor-quality alcohol, including surrogates. In addition, the desire to withdraw the administration of excise taxes on beer from the regional level to the federal one does not meet the objectives of sustainable development of regions, especially St. Petersburg as the largest metropolis in North-West of Russia. The article discusses the following issues: the role of excise taxes on beer for the regional budget revenues formation in Russia, the impact of excise taxes on beer increasing on their collection rates in the current conditions, as well as the increase in the consumption of other types of alcohol; and the prospects of a partial transfer of administration of the excise taxes on beer from regional budgets to the federal one.

KW - Beer excise tax

KW - Excises

KW - Regional budget

KW - Regional economic development

KW - Tax administration

KW - Tax policy

KW - Taxation

UR - http://www.scopus.com/inward/record.url?scp=85087534072&partnerID=8YFLogxK

U2 - 10.18288/1994-5124-2016-4-05

DO - 10.18288/1994-5124-2016-4-05

M3 - Article

AN - SCOPUS:85087534072

VL - 11

SP - 115

EP - 130

JO - Ekonomicheskaya Politika

JF - Ekonomicheskaya Politika

SN - 1994-5124

IS - 4

ER -