Russia is reported to be considering a profit tax, linked to dividends and investment, for minerals and metals companies when markets are strong to benefit from some of the windfall.
The profit tax rate would rise with higher dividends and lower investments, according to an Interfax report on Sept. 15, citing unnamed sources with knowledge of government discussions held between First Deputy Prime Minister Andrey Belousov and executives.
Russia’s government already is looking at how to implement a “floating” mineral extraction tax (MET) rate for producers of fertilizers and metals linked to global prices (GM Sept. 3, p. 31).
Russia’s Deputy Finance Minister Alexey Sazanov in August was cited by a Bloomberg report as saying it may propose the new scheme by the start of October. This week, the Finance Ministry was reported to be proposing the new MET change for Sept. 20, according to a Kommersant report.
The country already has in place a MET applicable to a number of fertilizer raw materials, including potassium salts, and apatite-nepheline, apatite, and phosphate ores, which is typically set annually (GM Oct. 2, 2020).