Russia Intends to Introduce Export Duty on Sunflower Oil

BUSINESS TURKMENISTAN
Russia Intends to Introduce Export Duty on Sunflower Oil
The new tax mechanism is expected to contribute to the maintenance of stable prices for sunflower oil for the domestic population. (Photo: Ria)

The Subcommittee on Customs Tariff and Non-Tariff Regulation of Russia has approved the introduction of a floating duty on the export of sunflower oil from Russia, which is planned to be in effect from September 1 for one year, the press service the country’s Ministry of Economic Development announced on Saturday.

According to the statement, the Subcommittee approved the proposal to set a formula-based export tax on sunflower oil. The size of the export duty will be 70% and it will be levied on the difference between the base price and the indicative price.

The Ministry clarified that the base price is set at $1,000, and the indicative price will be determined based on data from Reuters.

According to the Ministry of Agriculture of Russia, the new tax mechanism will contribute to an increase in the predictability of the market and the maintenance of stable prices for sunflower oil for the domestic population, the statement says.

The Russian government also plans to raise the export duty for sunflower seeds to 50%, but not less than $320/ton, for the period between July 1, 2021 and September 1, 2022. For the same period, a tax on rapeseed exports is planned at 30%, but not less than 165 euro/ton.

Russia’s current export duty for sunflower seeds is set at 30%, but not less than 165 euro/ton, between January 9 and June 30.