President Vladimir Putin supports the idea of replacing the transportation tax with fuel excises in the future, Interfax reported.
"The issue is very important and very sensitive, and on the whole we need to strive toward putting it all into excises. And to gradually get away from the transport tax," Putin said at a meeting with parliamentary faction leaders. "We are still not ready,"
"Indeed, we said we would do this," Putin added. "But at the urging of regional governors, we left it because this tax goes to their budgets. They were worried that we would cut off their revenues."
Putin also expressed caution concerning a planned increase in alcohol excise taxes.
"An increase [in excise taxes] is necessary, but it shouldn't be sudden," he said, adding that he doesn't see alcohol excise tax revenues as a solution to filling budget deficits.