25 Oct 2023 19:54

Russian Finance Ministry does not consider it necessary to revise "exchange" duties on any goods, including fertilizers

BISHKEK. Oct 25 (Interfax) - The Russian Ministry of Finance sees no reason to adjust additional export duties tied to the dollar exchange rate in relation to individual exporters to whom this duty applies, Deputy Finance Minister Alexey Sazanov said.

The Ministry specifically does not consider it necessary to cancel exchange rate duties on ammonia and methanol or to revise them downward for potash fertilizers.

"We believe that the duties have just begun to work, and at this stage we do not plan to cancel any duties on any products," he said, answering a question about a possible change in the conditions for collecting duties for fertilizer producers.

"Duties are the same for everyone, and we consider it wrong to make exceptions," the deputy minister said, noting that "proposals [to adjust duties] come in regularly."

Previously, an industry source told Interfax that the Ministry of Industry and Trade was considering the abolition of the exchange rate-linked export duty on ammonia and methanol, as well as a possible reduction in the duty rate from the current 10% to 3% for potash fertilizers.

The press service of the Russian Ministry of Economic Development, which is responsible for the work of the government customs and tariff subcommission, reported that they had received proposals to revise the "exchange" duty in relation to fertilizer exporters.

An export duty on a wide range of goods tied to the ruble exchange rate was introduced by the government on October 1, 2023 and will be in effect until the end of 2024. The duty rate at the exchange rate of 80-85 rubles per US dollar is 4%; at 85-90 rubles/1$ is 4.5%; at 90-95 rubles/1$ reaches 5.5%; and at 95 rubles/$1 and more is 7%. This scale is established for all goods specified in the resolution, except for fertilizers, for which there is already an ad valorem export duty of 7%. The duty increases to 10% at an exchange rate above 80 rubles/$1.