The amendments provide for the introduction of an indication to the Tax Code of the Russian Federation that a rent coefficient of 1 instead of 3.5 is applied to the extraction of concentrates containing platinum and platinum group metals
The Government of the Russian Federation proposes to amend the Tax Code, which will allow the application of a rent coefficient rate equal to 1 when calculating the mineral extraction tax (MET) for concentrates and other semi-finished products containing platinum and platinum group metals, follows from the bill submitted by the government to the State Duma.
The amendments provide for the introduction of an indication to the Tax Code of the Russian Federation that a rent coefficient of 1 instead of 3.5 is applied to the extraction of concentrates containing platinum and platinum group metals.
“Thus, the total amount of lost revenues of the budgets of the budget system of the Russian Federation when adjusting the application of the rent coefficient to the rate of tax on the extraction of minerals during the extraction of precious metals will amount to about 75-90 million rubles per year. At the same time, the lost revenues of the federal budget will amount to 30-36 million rubles per year, and the budgets of the constituent entities of the Russian Federation 45-54 million rubles per year,” the financial and economic justification for the draft law notes.
Earlier, the Ministry of Finance developed a draft amendment to the Tax Code, which should eliminate the sharp jump in the taxation of the extraction (MET) of concentrates containing platinum group metals, TASS was told in the press service of the Commissioner for the Protection of Entrepreneurs’ Rights under the President of Russia Boris Titov, citing the ministry’s response sent to the business ombudsman.
Earlier, Titov addressed a letter to the Deputy Minister of Finance of the Russian Federation Alexey Sazanov, in which he outlined the problems that had arisen at enterprises mining platinum and platinum group concentrate. The reason for this was a complaint from the management of Kosvinsky Kamen CJSC, which is engaged in the extraction of gold-platinum concentrate. The general director of the enterprise, Andrey Bardizh, indicated that since 2021, platinum production has become unprofitable and has stopped at many of its enterprises.
In July 2021, a rent coefficient of 3.5 was introduced when calculating the tax on the extraction of a number of minerals. An exception was made for concentrates containing gold – for them, the coefficient was equal to 1.