Russia to introduce tax on grain exports
Tuesday, 11 September 2007
MOSCOW, Sept 10 (AFP): Russia is set to introduce taxes of up to 25 per cent on grain exports, the Kommersant daily reported today quoting an official, but experts warned such a move would undermine struggling farmers.
"The order to complete all necessary documentation for product intervention and introducing export taxes was received by the ministry two weeks ago," the daily's source said, adding that "streamlining the strategy of grain market intervention and starting on it is due this week."
"All necessary preparations are complete, the tax is set at 10 to 25 per cent depending on the type of grain," the source said.
The ministry's press service confirmed that the issue is due to be decided Monday, Kommersant wrote.
Last week Economic Development and Trade Minister German Gref said that "conducting interventions will be one of the measures to rein in inflation this year," the daily noted.
However, experts quoted by the daily warned that Russian farmers would be hard hit if the tax is introduced before the harvest is over, as grain prices, which peaked in July, sank considerably.
"Leaders of over 50 grain-producing farms wrote to the Kremlin asking not to limit grain exports until after the harvest, with almost every letter saying that limiting exports would lead to a collapse of grain prices on the internal market," the daily wrote.
"This is the first year that farmers had a chance of making a tidy profit and stop depending on endless loans. Now these hopes may be dashed," farm director Tatyana Gudoshnikova was quoted by Kommersant as saying.
"The order to complete all necessary documentation for product intervention and introducing export taxes was received by the ministry two weeks ago," the daily's source said, adding that "streamlining the strategy of grain market intervention and starting on it is due this week."
"All necessary preparations are complete, the tax is set at 10 to 25 per cent depending on the type of grain," the source said.
The ministry's press service confirmed that the issue is due to be decided Monday, Kommersant wrote.
Last week Economic Development and Trade Minister German Gref said that "conducting interventions will be one of the measures to rein in inflation this year," the daily noted.
However, experts quoted by the daily warned that Russian farmers would be hard hit if the tax is introduced before the harvest is over, as grain prices, which peaked in July, sank considerably.
"Leaders of over 50 grain-producing farms wrote to the Kremlin asking not to limit grain exports until after the harvest, with almost every letter saying that limiting exports would lead to a collapse of grain prices on the internal market," the daily wrote.
"This is the first year that farmers had a chance of making a tidy profit and stop depending on endless loans. Now these hopes may be dashed," farm director Tatyana Gudoshnikova was quoted by Kommersant as saying.