28 Aug 2023 16:57

Acron estimates windfall tax payments at 4.7 bln rubles - financial report

MOSCOW. Aug 28 (Interfax) - Acron plans to remit 4.7 billion rubles in windfall tax payments by the end of 2023 in accordance with the Federal Law on Excess Profit Tax, the Russian mineral fertilizer producer said in a financial report.

The total windfall tax receipts from fertilizer producers have been estimated at about 25 billion rubles if paid this year "at a discount" at a rate of 5% instead of 10%.

This amount should be included in the overall estimate of revenues from export customs duty on fertilizers, which is 120 billion rubles. Due to the way the duty is calculated and the price of nitrogen and potash fertilizers, which make up more than 60% of the sector's exports, falling below the cut-off price, only about 6 billion rubles were collected in the first half of the year. Russia will introduce an export duty for fertilizers from September 1 until December 31, 2024, with producers paying 87 billion rubles into the budget.

Analysts estimate the new arrangement for the export duty on fertilizers will cost Acron about 10 billion rubles.

The Finance Ministry expects that, as like the windfall tax, exporters will pay the planned amount in advance by the end of 2023, sources familiar with the discussion told Interfax.