Metallurgists of Russia want to pay less taxes

The Ministry of Industry and Trade of Russia supported the proposal of the Russian Steel Association (which unites the largest domestic ferrous metallurgy companies, including Severstal, NLMK, Evraz) to set the maximum level of mineral extraction tax (MET) payments for coking coal and iron ore and on the excise tax on steel for 2022 at the level of 131 billion rubles. This was reported to RBC in the press service of the department.

This amount is included in the budget for this year, along with income from the severance tax on non-ferrous metals and mineral fertilizers (a total of 179 billion rubles). At the same time, taxes and excise are calculated according to formulas linked to the cost of raw materials and steel, so in reality revenues may be higher. “If everything is left as it is now, with a high degree of probability the total volume of these payments will be higher than planned,” the Ministry of Industry and Trade explained. The ministry did not say what the estimated amount of payments in question.

According to the head of the analytical department at BCS Global Markets, Kirill Chuiko, based on forecast prices, budget revenues from the excise tax on steel and the mineral extraction tax on coking coal and iron ore in 2022 may amount to more than 200 billion rubles. Since the budget was approved in November, coal prices have risen by 40% and ore by 56%, Chuiko explains.

The press service of the government reported that the issue of the tax burden for metallurgical companies is now being worked out by "interested federal executive authorities."