'Exchange rate' duties should not affect investment activity, exports; adjustments possible if necessary - Manturov

ASTANA. Sept 26 (Interfax) - Implementing additional export duties tied to the dollar exchange rate should not affect investment activity and supply volumes of exporters; however, if necessary, the authorities are ready to consider adjustments if companies appeal for them, Deputy Prime Minister and Industry and Trade Minister Denis Manturov told reporters on Monday.

"We have been very attentive, in fact, to ensure that this does not in any way affect the investment programs of enterprises, so that everything is rather balanced. However, as we implement the decision, we will monitor the situation and, if necessary, we will consider appeals from companies if there is any necessity for adjustments. We have tried to check everything, though," Manturov said on the sidelines of the Innoprom Kazakhstan exhibition.

Manturov also expressed the opinion that exports of manufactured goods, on which "exchange" duties have been implemented, should not decline.

"It should not have any effect, especially since the current exchange rate component, on the contrary, creates opportunities to export more," Manturov noted.

The Russian government last week approved a resolution on implementing export duties within the country on a wide range of goods from October 1, 2023, until the end of 2024 at 4%-7% at an exchange rate of 80 rubles/$1 and higher. Consequently, the rate will be 4% at the exchange rate of 80-85 rubles/$1; 4.5% at 85-90 rubles/$1; 5.5% at 90-95 rubles/$1; and 7% at 95 rubles/$1 and higher.

The new duties do not apply to oil, gas, grain, and timber. Consequently, the largest payers will be mining companies, as well as exporters of ferrous, non-ferrous, and precious metals, and coal and fertilizers. The export duty rate for fertilizers will increase to 10% from the already introduced 7% when the exchange rate exceeds 80 rubles/$1.

According to the explanatory note to the draft budget, which Interfax has reviewed, exporters should pay around 50 billion rubles per month for the "exchange rate" duty in the respective fourth quarters of 2023 and in 2024. Revenues from "exchange rate" duties are expected to total 151.6 billion rubles in the remaining months of 2023, and 604.25 billion rubles in 2024.