RE: Price beginning to look interesting down here4 Oct 2019 13:42
Getmantsev recognized the need for serious adjustment of bill No. 1210
10/04/19 12:55
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The rules proposed by Bill No. 1210 are much more stringent than they should be. This was stated by the head of the parliamentary committee on tax and customs policy, Daniil Getmantsev, the Ministry of Industry reports.
"We agree with business and experts - about half the bill should be updated in terms of the proposed standards," he said.
According to D. Getmantsev, the bill will be substantially amended, starting from rental rates for iron ore mining and ending with BEPS.
The head of the committee also said that by the second reading, the bill will be amended to increase rental payments for the extraction of manganese ores.
"If we pass the bill today, we will have two weeks to make amendments, and then more time to discuss them," he said.
As reported, bill No. 1210 proposes not only to increase the rent for iron ore extraction from 8% to 10%, but also to increase the lower threshold for the profitability of iron ore from 14-25% to the NBU's double discount rate - today it is 33%. It is also proposed to take the cost of marketable products (including concentrate, sinter, pellets) with a Fe62-68% content instead of the cost of mined ore with a Fe16-30% content as a base for taxation.
As previously reported, the international audit company PWC conducted a study according to which changes to the Tax Code enshrined in Bill No. 1210 will make rental payments in relation to the commercial profit of enterprises almost 10 times more than in Russia and also higher than in Australia , Brazil and China.