Deputy Finance Minister Sazanov: the size of the one-time fee from the business has not yet been determined

The size of the rate of mandatory one-time tax collection from large businesses (windfall tax) to the budget has not yet been determined, said State Secretary-Deputy Minister of Finance Alexei Sazanov. According to him, a reduction in the rate for individual companies is possible only by decision of the government or the president.

Mr. Sazanov said that while the size of the windfall tax is being discussed, since the Federal Tax Service (FTS) “is still processing declarations.” “At the end of just this week, they should finally give us an understanding of the tax base for 2022,” the deputy head of the Ministry of Finance told reporters (quoted from TASS).

He explained that decisions to reduce the one-time fee “cannot be made in the Ministry of Finance.” “In any case, we cannot make any exceptions at our level, this is only by decision of the government or the president,” Alexei Sazanov specified.

The deputy minister added that the possibility of raising the mineral extraction tax (MET) on coal in the fourth quarter, as well as raising taxes for any other industry, will also be approved by the government or the head of state. He said that now the Ministry of Finance is not considering an increase in the severance tax on coal or taxes on other industries.

Interfax, citing a source informedthat PhosAgro CEO Mikhail Rybnikov sent a letter to the Presidential Administration of the Russian Federation with a request to reduce the one-time fee to the budget. He asked to apply a reduction factor for companies when calculating a one-time fee to the budget, adjusting the tax for the amount of export duties paid in 2023.

Previously reportedthat the fee is proposed not to apply to the oil and gas, coal industry, small and medium-sized businesses and companies with pre-tax profits for 2021–2022 of less than 1 billion rubles. Finance Minister Anton Siluanov predictedthat the contribution rate from additional profit for 2021-2022 will be about 5%.

“Kommersant” learned that the Ministry of Finance is considering an increase in the severance tax in the fourth quarter in the case of good financial performance of market participants in January-March. At the same time, the state does not plan to introduce export duties on coal.

Details – in the material “Kommersant” “Coal in the tax context”.

Laura Keffer