Russia will exempt coal export taxes in the first quarter of 2023
2022 11/21
Russia will exempt coal export taxes in the first quarter of next year, according to Russian media reports. At the same time, the Russian Finance Ministry will monitor the coal market and decide whether to resume the tax based on the results of the monitoring in the first quarter.
Russian Deputy Finance Minister Sergei Sazanov said in a media interview that thermal coal and coking coal will be exempted from export taxes from the beginning of 2023, but will continue to collect mining taxes. It is said that from January 1 to March 31, 2023, Russia will increase the mineral mining tax rate of anthracite, coking coal and thermal coal, which will bring 14.4 billion roubles to the government budget.
According to the rules, Russia's thermal coal and coking coal export tax thresholds are set at $150 per tonne FOB and $170 per tonne FOB respectively, with a tax rate of 40 per cent. In recent months, Russian coal exports have been priced below the tariff threshold and, in some areas, below the cost of production.