The State Duma has raised the threshold for the MET deduction for tin mining in the Far Eastern Federal District

The State Duma has raised the threshold for the MET deduction for tin mining in the Far Eastern Federal District
The State Duma has raised the threshold for the MET deduction for tin mining in the Far East
MOSCOW, 22 Oct – PRIME. The State Duma has adopted in the second and third readings a law that, among other things, raises the threshold for tin prices for the application of the MET deduction by mining companies in the Far East.
The initial version provided for additional indexation of excise rates and a number of other tax innovations. During the second reading, the State Duma supported a number of additional amendments to the document, including those related to the MET deduction for tin mining.
The current legislation provides the right to apply the MET deduction for the extraction of high-quality tin ores at new deposits, fully or partially located in the Far Eastern Federal District, from January 1, 2023 to December 31, 2032. The deduction can be applied if the average price of tin for the tax period on world markets does not exceed 2,818 rubles per kilogram. The amendments supported by the State Duma increase this threshold to 2,934 rubles per kilogram from January 1, 2025.
The cutoff price is raised “in connection with the change in the macroeconomic situation,” Galina Danchikova, a member of the Duma Committee on Budget and Taxes, explained at a meeting of the Duma Committee on Budget and Taxes on Monday. The cost of tin on the world market has increased significantly this year and as of October 18, it was $31,313 per ton on the London Metal Exchange.
In addition, technological losses during gold mining are excluded from the calculation of the increased mineral extraction tax. From June to December 2024, an additional coefficient to the mineral extraction tax in the amount of 78 thousand rubles per kilogram is applied to gold mining. The new law exempts actual gold losses during its mining from this coefficient during this period, but within the loss standards. That is, this relaxation is given retroactive effect.
In addition, in order to stimulate new investment projects for the extraction of “poor” complex ores with a low content of useful components in the Krasnoyarsk Territory, the conditions for the cancellation of the application of the “lower threshold” of the mineral extraction tax rate for subsoil areas whose reserves were first entered into the state balance after January 1, 2024 are being clarified.
The law, which also contains other provisions, must enter into force on the day of official publication, with the exception of certain provisions for which other terms have been established.