Rusal avoided new taxes due to lack of market income

The Russian metallurgical company Rusal did not fall under the new taxes, because the Ministry of Finance did not see market income from it due to the increase in aluminum prices, said the head of the department, Anton Siluanov. Let us remind you that the authorities want to withdraw excess profits from metallurgists by increasing the mineral extraction tax (MET).

“As regards aluminum, there was no such increase in super-opportunistic incomes until recently, before all the political events in Guinea, and therefore Rusal was out of our proposals,” Mr. Siluanov said at a briefing (quoted by Interfax).

In early September, a coup took place in Guinea. Since Rusal’s main factories are located there for the extraction of bauxite, the raw material for aluminum production, the Guinean political crisis could negatively affect the company.

In August, Russian President Vladimir Putin announced the withdrawal of surplus profits from metallurgists in the form of increasing the severance tax. The new mechanism should replace the export duties introduced on August 1 from 2022. Since the beginning of the year, the MET for the metallurgical sector has been increased by three and a half times. The producers of metals and mineral fertilizers have suggested that the government should instead levy a higher income tax on them.

More details – in the material of “Kommersant” “The state is offered to take from the profit.”

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