The Finance Ministry’s proposal will leave the profit level in industries above 25%
In Russia, it is planned to increase the tax burden by 1.15 to 2.3 times on such industries as iron mining and mineral fertilizer production. The Finance Ministry of the Russian Federation submitted a corresponding proposal to the government for consideration.
“The Finance Ministry proposed to share with the state the economic rent of such industries as the production of mineral fertilizers and iron ore mining. For the Iron Mining industry, it is envisaged to increase the tax by 1.15 times, and for the Mineral Fertilizer Production (potassium) industry – by 2.3 times and for the Mineral Fertilizer Production (phosphorus) industry – by two times,” the press service of the Finance Ministry of the Russian Federation reported. It is also proposed to introduce an excise tax on the purchase of gas for ammonia production for producers of nitrogen fertilizers in the amount of 1,200 rubles per thousand cubic meters of fuel.
The proposal was submitted after an analysis was conducted by the financial department. It was found that the operating profitability levels of businesses in these industries are two or more times higher than the average for the economy at 10-12%. At the same time, even after increasing taxes, the level of profit in the industries will be higher than 25%.
The Russian Ministry of Finance has proposed a number of amendments to the country’s government to improve the tax system, RT reports. The head of the department, Anton Siluanova, believes that the adoption of the proposed changes will ensure stable and predictable conditions for citizens, businesses and regions for the next six years.