Russia sets new MET tax for metals firms, drops idea of new profit tax (updated)

Lifeist Wellness

23/09/2021 16:33

(Adds details on new tax, comment by finance minister, industry
background)
    MOSCOW, Sept 23 (Reuters) - Russia has agreed on a new
formula of mineral extraction tax (MET) with Russian producers
of steel, iron ore, coking coal, fertilisers and mixed ores,
such as mined by Nornickel  GMKN.MM , but dropped idea of a new
profit tax, officials said. 
    Russia has dropped the idea of setting a formula-based
profit tax linked to previous dividends and investments for now,
Interfax news agency reported on Thursday, citing Alexander
Shokhin, head of the Russian Union of Industrialists and
Entrepreneurs.
    The concept will be revised and will not be introduced at
least until 2023, Interfax quoted Shokhin as saying. This idea
was criticised by Shokhin earlier this week as potentially
damaging for investment climate.  urn:newsml:reuters.com:*:nL8N2QO3DC
    The finance ministry said earlier this week that the metals
companies will provide 160 billion roubles ($2.2 billion) in
additional proceeds to the 2022 state budget via the new MET.
Annual proceeds of similar size are expected from them in 2023
and 2024.  urn:newsml:reuters.com:*:nR4N2Q202M
    "We have agreed taxation parameters with business on
fertilisers, coking coal and multi-component ores," Finance
Minister Anton Siluanov told a government meeting on Thursday.
    The new MET tax will be set for iron ore at 4.8% starting
from 2022, Interfax quoted Shokhin as saying. The new excise tax
on semi-finished steel product will be set at 2.7%, he said.    
  
 ($1 = 72.7810 roubles)

 (Reporting by Vladimir Soldatkin in Moscow
Writing by Polina Devitt
Editing by Alison Williams and Matthew Lewis)
 ((Polina.Devitt@thomsonreuters.com))