Ministry offers raising MET for ALROSA by 19 bln rbl in Q1 2023

MOSCOW, Dec 9 (PRIME) -- The Russian Finance Ministry has prepared proposals to raise the mineral extraction tax (MET) for diamond mining giant ALROSA by 19 billion rubles in January–March 2023, Sergei Romanov, head of the ministry’s department for budget methodology and financial reporting in the public sector, said on Friday.

“Currently, the Tax Code is being amended with an increase of MET for natural diamonds that ALROSA mines by 19 billion rubles for a limited period, I mean for the first quarter of 2023,” he said during a session of the budget and tax committee of the parliament’s lower chamber State Duma.

The ministry previously drafted an amendment to the Budget Code that contributes 46% of income from MET on diamonds to the federal budget, and 54% to the regional budgets from March 10, 2023 through May 10, 2023, while previously 100% of the income was transferred to the regional budgets.

The suggested increase of MET should allow the republic of Yakutia to compensate revenue shortfalls connected ALROSA’s decision to pay no dividends, Romanov said.

(62.6722 rubles – U.S. $1)

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