The Kremlin’s economic program continued to unfold when government officials on May 25 announced details of their tax reform plans. Under the new plan, both cuts in the income and payroll taxes and the elimination of taxes on turnover are to be offset by sharp increases in taxes on gasoline and tobacco. According to Prime Minister Mikhail Kasyanov, the government intends to increase gasoline excise taxes by six times and to double tobacco excises. The move is unlikely to be popular among ordinary Russians, however, and for that reason could run into trouble in the State Duma. The Russian government is also introducing a flat income tax rate of 13 percent to replace the current progressive income tax, which runs from 12-30 percent. The move was being described as a “key to tax reform” by one top Kremlin economist. The government is hoping to achieve a 4-5 percent growth rate next year.