The Ministry of Finance proposed to set an export duty on mineral fertilizers at 8% from September

The Ministry of Finance of Russia proposed to establish a single export duty on mineral fertilizers at the level of 8% from September 1, 2023 until the end of 2024. This is stated in project the decision published on the portal of draft legal acts.

It is proposed to establish an export duty for mineral fertilizers under the codes 3102, 3103, 3104, 3105 of the TN VED of the EAEU – these are mineral or chemical nitrogen, phosphorus, potash fertilizers, as well as those containing two or three nutrients (nitrogen, phosphorus, potassium). A duty is also proposed to be set on diammonium hydrogen phosphate (diammonium phosphate) and ammonium dihydrogen phosphate (monoammonium phosphate).

The draft notes that the estimated amount of budget revenue from export customs duty for 2023 was about 119 billion rubles. “At the same time, the current law enforcement practice has shown that against the background of changes in the price environment in the global fertilizer markets and the peculiarities of the marketing policy of mineral fertilizer producers, the amount of revenues to the federal budget from export customs duty for 6 months of 2023 is estimated at 6 billion rubles,” said in the document.

At the same time, the fertilizer industry, despite the decline in prices in 2023, still maintains sufficient operating profitability, which allows manufacturers to carry out investment programs.

At the beginning of August, the Ministry of Finance published a similar draft resolution, which also proposed an 8% duty on fertilizers. The government decided to change the scheme for collecting export duties due to falling prices for fertilizers, which reduced tax revenues to the budget. Experts interviewed by Kommersant noted that the change in the formula would affect Phosagro and Eurochem to the greatest extent.

According to the Russian Association of Fertilizer Producers (RAPU), in January-July, chemical companies increased the production of mineral fertilizers to 31 million tons in physical weight. At the same time, deliveries to Russian farmers increased by 6%, to 4.4 million tons in the active substance.

More details – in the material “Kommersant” “Fertilizers are taken orally”.

Olesya Pavlenko