Support The Moscow Times!

Truck Tax Will Drive Up Food Prices By New Year - Unions

Russian food producers have warned Prime Minister Dmitry Medvedev that food prices will rise significantly by the end of the year as a result of the new Platon truck tax, the Kommersant newspaper reported Thursday.

In a letter to Medvedev, 20 food producer unions wrote that transportation costs in Russia's regions had risen by 20 to 100 percent because of the Platon system.

The national milk producers union estimates that with the truck tax set at 1.53 rubles a kilometer, one liter of milk will cost an extra 1.2 rubles in the supermarkets.

Food producers believe that the tax should be suspended as it is ineffective. The government should raise the fuel tax instead, according to the head of the national meat association, Sergei Yushin, Kommersant reported.

Despite these claims, the government will not discuss the suspension of the Platon system, according to deputy prime minister Arkady Dvorkovich, Ekho Moskvy radio reported Thursday.

The producers are pursuing their own agenda in a bid to raise food prices over the holidays, Dvorkovich said.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more