Chemical companies face a sharp increase in the mineral extraction tax
The State Duma, in its final third reading, has approved the law, which since January 1, 2021, increases the tax on the extraction of commercial minerals by 3.5 times for some solid minerals, including for potassium salts (the current rate is -3.8%), apatite-nepheline, apatite ores, and phosphorites (4%).
Between the first and second reading of the draft law, the business managed to get a five-year grace period for the new production projects for which the investment protection and promotion agreements have been concluded. The depletion of reserves in these sites as of January 1, 2021, should be below 1%.
The Ministry of Finance of Russia expects that the increase in tax on the extraction of commercial minerals will bring to the state budget additional 56 billion rubles per year (approximately $716.2 million).