Machine builders proposed to the government to change the duty regime

The Union of Machine Builders of Russia submitted proposals to Deputy Prime Minister Yuri Borisov of the Russian Federation that would help stabilize metal prices, TASS reports, citing a letter from First Deputy Chairman of the Union, Vladimir Gutenev. The letter proposes, in particular, to increase export duties on ferrous metal and to abolish the duty on the import of rolled metal products.

Among the measures proposed in the letter:

  • increased export duties or quotas for scrap ferrous metal and rolled metal used in railway engineering;
  • as an alternative to higher duties – issuing export permits for scrap metal only when domestic demand is satisfied;
  • regulation of prices for metal products within the framework of national projects and state investment programs;
  • abolition of import duties on the import of rolled metal products;
  • introduction of a price damper in the ferrous metal market;
  • subsidizing the production of metal products for mechanical engineering.

In the paragraph on subsidies, it is noted that financing could be carried out “at the expense of additional budget revenues resulting from sharp jumps in the cost of the metal.”

TASS does not specify the date of the letter of the metallurgists. The message about the appeal to Mr. Borisov came after the meeting of representatives of metallurgical companies with Denis Manturov held on June 1. The meeting took place shortly after the statements of First Deputy Prime Minister Andrei Belousov, who said that metallurgists in 2020 “pushed the state” by 100 billion rubles. Later, Mr. Belousov criticized the metallurgists for the fact that they “made some screams” because of the increased tax burden.