The Ministry of Finance of Russia decided to establish excise Metallurgical companies and fertilizer manufacturers. This is stated in the bill of departments, which RBC managed to familiarize themselves. At the same time, the document does not cancel previously named plans to increase other taxes for the industry, which was previously accused of “fattening” of the state.
According to the bill, the steel will introduce excise in the amount of three percent of the export price of slabs (steel blanks) in Russian ports, if it is higher than 300 dollars per ton. Under the new tax there may be pipe manufacturers. Also, the document provides for an increase in mineral extraction tax (NDPI) and income tax.
NDPI size for coking coal producers will be 1.5 percent, for iron ore manufacturers – 5.5 percent from the market value of raw materials. For manufacturers of fertilizer, NDPI will grow by 2.5 times to 8.75 percent, although it was originally planned to increase to 6 percent. Nickel, copper and metals of the platinum group producing companies will pay 730 rubles for each ton of mined ore and 6 percent to the metal price in the global market. Profit tax will grow only for those companies that paid more dividends than invested.
The industry did not expect such a development of events, considers the analyst IB “Sinara” Dmitry Smolin. According to him, the market was counting on one of three options – either raising the NPPI, or an increase in income tax, or an increase in two fees at once. All three collection will cost ferrous metallurgy at 6-8 percent of profits until taxes (EBITDA) in 2022, says Smolin.
At the end of May, the First Deputy Prime Minister Andrei Belousov accused the metallurgical companies in the “fattening” of the state for 100 billion rubles due to the increase in prices in the domestic market. The government has introduced export duties on the export of raw materials from August 1 to December 31, 2021 to compensate for the loss of the budget.
Government plans to increase NPPI for metallurgists became known at the end of August. In response, they proposed to raise their profits tax to continue to invest in complex projects with a small content of minerals. During the negotiations in mid-September, the Ministry of Finance also decided to increase the income tax. Against the background of the government’s plans, the shares of Russian metallurgical companies fell by a few percent.