RSPP asks ministries to give businesses say on tax initiative that will replace metal export duties
2 September 2021 00:00:00

The Russian Union of Industrialists and Entrepreneurs (RSPP) has proposed that the Economic Development Ministry and Finance Ministry hold a meeting with businesses to discuss the parameters of a new tax maneuver that will replace export duties on metals in 2022.

"It must be noted that proposals to increase the fiscal burden are not being discussed with the business community using formalized mechanisms and forums," the big business lobby said in letters sent to Economic Development Minister Maxim Reshetnikov and Finance Minister Anton Siluanov in mid-August, copies of which have been obtained by Interfax.

"The business community finds out about the development and certain details of conceptual documents from the media," the letters, signed by RSPP president Alexander Shokhin, said.

Russia's business community includes companies that are the primary local employers and taxpayers, with sales in the billions and trillions of rubles, Shokhin said.

"Many companies that are members of the RSPP are now putting together investment programs for the future. Moreover, the budgets of the Russian Federation's budget system are also being formed taking into account the financial and economic forecasts for companies' activities. And the level of the fiscal burden is a key parameter in the formation of investment plans, including when determining the optimal mechanisms and instruments of support for specific projects," Shokhin said.

The business community proposes to hold a meeting "as soon as possible in the forum of the RSPP," he said.

Mineral extraction tax or MET scenarios for the mining industry are under discussion, with final proposals expected by the beginning of October, Deputy Russian Finance Minister Alexei Sazanov told reporters on Tuesday.

"We are actually having quite a lively debate on this, but there are no final proposals yet," he said.

"I think [proposals will be ready] by the beginning of October," he said.

The idea is to have a floating MET rate linked to global prices for finished metal products, he said.