Federation Council approves bill on liquid steel excise

MOSCOW, Nov 19 (PRIME) -- The Federation Council, the Russian parliament’s upper chamber, on Friday approved a bill, which introduces an excise on liquid steel used in metallurgy starting from 2022 with some exclusions.

The bill sets an excise of 2.7% of the average export FOB price for slabs in the southern ports of Russia. The excise will amount to zero if the price is below U.S. $300 per tonne.

A special excise will be imposed on liquid steel produced in open-hearth furnaces, induction furnaces, and electrically heated furnaces with ferrous metal scrap accounting for 80% of raw materials. The excise will amount to 30% of the difference between the average export FOB price for steel slabs and the CPT price of scrap metal with delivery to the railway stations in the Urals Federal District reduced by 12,500 rubles and by 50% of the price of alloying elements.

If the rate calculated by the method exceeds 1,000 rubles, the excise will stay at 1,000 rubles, if it falls below zero, the excise will amount to zero.

During a second reading at the parliament’s lower chamber State Duma, the deputies excluded from the excise the liquid steel used in the car and defense industries. The companies that produce less than 300,000 tonnes of special types of steel per year will also be excluded from the excise, as well as small and medium-sized companies that produce less than 1,000 tonnes of steel products per month.

To become law, the bill must be signed by the president.

(72.6022 rubles – U.S. $1)

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