FAS could slap export duties on coking coal prices

The Federal Antimonopoly Service (FAS) has proposed the Russian government to impose export duties on coking coal and scrap metal with a view to stabilizing metal product prices, Interfax wired quoting fas Head of Industry Control Division Alexei Ulyanov as saying.

The antimonopoly watchdog has proposed hiking the specific rate for ferrous scrap metal and levying an export duty on coking coal. Introduction of an export duty on iron ore is to be addressed separately.

 

Whatever the case may be, the amount of export duties will not be prohibitive (over 30%). “If export duty accounts for the bulk of companies’ tax payments, they will start to pass on the tax burden to all consumers. If the amount of the duty is relatively small, metal makers will be able to focus on the domestic market instead of exports”, Ulyanov said.

 

For the record, the export duty on ferrous scrap metal and waste presently stands at 15% (ad valorem rate), but at least €15 (specific rate) per t. In July 2007 coking coal export duty was slashed from 6.5% to 0%.