Russia may change tax policy for metallurgical companies
According to First Deputy Prime Minister Andrei Belousov, raising the mineral extraction tax (MET) would be more effective in this case than introducing a damper.
Russian authorities are ready to consider amendments to the tax policy with regard to the metallurgical industry, First Deputy Prime Minister Andrei Belousov said in an interview with the RBC TV Channel.
"We have a free market, but the state has every opportunity to set taxes in such a way that it will take away from them [metallurgical companies] what they received (excess profits - TASS) after behaving this way. I think we will do it," Belousov said.
According to him, raising the mineral extraction tax (MET) would be more effective in this case than introducing a damper.
"The classic way to deal with such a gap between domestic and world prices is an export duty or a modified export duty, such as a damper," he said adding that he is against introducing such instruments against metallurgists.
"It is better to increase the MET, because the markets are congested, and a number of our fellow competitors, for example, the Americans, and Europeans too, are working on countervailing measures or have already introduced them against our exporters. This is an import duty, "Belousov said.
The incomes of metallurgists
The incomes of metallurgists in Russia have grown exponentially in 2020, they received 100 bln rubles in excess profits and must return this money to the budget, said Russian First Deputy Prime Minister.
"We see that in a Covid year, the reporting has now come, the income of metallurgists has grown several times, this is not bad. The bad thing is that they all raised prices on the domestic market in line with the rise in world prices and the state defense order for about 100 bln rubles per year. I think they should return this money in the form of tax," he said.
"I told some of them: I will not think about how to remove such and such a tax from you through the MET (tax on the extraction of minerals). Here is the price tag, together with you we will think about how best to do it," said Belousov. According to him, metallurgists understand that they will have to return this money. "We have a free market, but the state has every opportunity to establish taxes in such a way that what they have received can be taken from them. This is what we will do, I think," he added.
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Russian authorities are ready to consider amendments to the tax policy with regard to the metallurgical industry, First Deputy Prime Minister Andrei Belousov said in an interview with the RBC TV Channel.
"We have a free market, but the state has every opportunity to set taxes in such a way that it will take away from them [metallurgical companies] what they received (excess profits - TASS) after behaving this way. I think we will do it," Belousov said.
According to him, raising the mineral extraction tax (MET) would be more effective in this case than introducing a damper.
"The classic way to deal with such a gap between domestic and world prices is an export duty or a modified export duty, such as a damper," he said adding that he is against introducing such instruments against metallurgists.
"It is better to increase the MET, because the markets are congested, and a number of our fellow competitors, for example, the Americans, and Europeans too, are working on countervailing measures or have already introduced them against our exporters. This is an import duty, "Belousov said.
The incomes of metallurgists
The incomes of metallurgists in Russia have grown exponentially in 2020, they received 100 bln rubles in excess profits and must return this money to the budget, said Russian First Deputy Prime Minister.
"We see that in a Covid year, the reporting has now come, the income of metallurgists has grown several times, this is not bad. The bad thing is that they all raised prices on the domestic market in line with the rise in world prices and the state defense order for about 100 bln rubles per year. I think they should return this money in the form of tax," he said.
"I told some of them: I will not think about how to remove such and such a tax from you through the MET (tax on the extraction of minerals). Here is the price tag, together with you we will think about how best to do it," said Belousov. According to him, metallurgists understand that they will have to return this money. "We have a free market, but the state has every opportunity to establish taxes in such a way that what they have received can be taken from them. This is what we will do, I think," he added.
Source