Excise tax on steel and increase in mineral extraction tax on ore approved by the government of the Russian Federation

The excise tax on liquid steel at a rate of 2.7% and the mineral extraction tax (MET) on ore at 4.8% were approved by the Russian government. This was announced by the head of the Russian Union of Industrialists and Entrepreneurs (RSPP) Alexander Shokhin on Thursday, September 23.

The decision was made at a meeting of Russian Prime Minister Mikhail Mishustin with business representatives. Tax agreements will be valid for three years

“Agree for three years that it works,” Shokhin quoted in Interfax.

He also added that a compromise was reached on mineral fertilizers.

“This is what the business has agreed with, bearing in mind that there is really a large volume and social challenge ahead of the budget. But the mechanism itself, of course, in the course of the implementation of these proposals can be monitored, adjusted, “- said the head of the RUIE.

Following the meeting, Mikhail Mishustin said that the Russian government had established a constructive dialogue with domestic companies to change the tax burden. He believes that it is very important to maintain a constant dialogue between the government and business representatives, Gazeta.ru reports.

Earlier, on August 6, Russian President Vladimir Putin said that the MET is planned to increase from 2022. He warned that the tax would affect metallurgy.

On July 1, the head of the Ministry of Economic Development and Trade Maxim Reshetnikov said that tax legislation for metallurgical companies could be fine-tuned in 2022, after the expiration of export duties on metal.

On June 25, the Russian government approved the introduction of temporary duties from August 1 to December 31, 2021 on the export of non-ferrous and ferrous metals outside the Eurasian Economic Union. This decision was aimed at curbing the growth of prices for metal products in the domestic market.

Reshetnikov made a proposal to introduce temporary export duties on ferrous and non-ferrous metallurgy products from August 1 to December 31 at a government meeting a day earlier. At the same time, Mikhail Mishustin instructed to urgently prepare and submit to the government measures to introduce such export duties.

In turn, First Deputy Prime Minister Andrei Belousov noted at a government meeting that the introduction of a temporary export duty on metals is not a punishment for metallurgical companies, it is a measure to protect the domestic market. He also said that this is a temporary measure.

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