Fin Min proposes 8% export duty on fertilizers Sep 1 – Dec 31

MOSCOW, Aug 17 (PRIME) -- The Finance Ministry has proposed to set an 8% fertilizer export duty from September 1 until December 31, 2023, as follows from a draft order published on the website for legal acts late on Wednesday.

"In order to keep the planned contributions to the federal budget, fine-tuning of the existing mechanism of tax and tariff regulation of mineral fertilizers exports is needed. The fine-tuning envisages setting a reduced ad-valorem rate of the export customs duty on mineral fertilizers… at 8% from September 1, 2023 until December 31, 2024," the accompanying note read.

The key fertilizer producers would thus pay about 10% of the operating profit, or 15% of the free cash flow on average for 2022 to the budget. The charge is not expected to hurt the industry significantly in the long term, the ministry said.

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