Russia Approves Formula-Based Sunflower Oil Export Tax From September
The Russian government has approved a formula-based export tax system for sunflower oil and a higher export tax for sunflower seeds, it said on Wednesday, as part of a drive to combat domestic food price inflation.
Russia has imposed several export taxes for grains and sunseeds, among other measures, since December in its battle to tame rising food prices in the coronavirus pandemic.
Starting from September, the formula-based export tax on sunflower oil is planned for one year, according to an order signed by Prime Minister Mikhail Mishustin.
The government set it at 70% of the difference between $1,000 and an indicative price per tonne that will be calculated by the agriculture ministry. The ministry will reduce that indicative price by $50 per tonne each month.
Russia's export duty for sunflower seeds will rise to 50%, but will not be less than $320/tonne, for the period between July 1, 2021 and 31 August, 2022, the government said.
For the same period, a tax on rapeseed exports is planned at 30%, it added.
Last month, the Russian government announced plans to extend retail price cuts on sugar and sunflower oil and eliminate some import taxes in its battle to tame the country's rising food inflation.
Since December, Russia has imposed several grain export taxes and other measures. Producers of sugar and sunflower oil had agreed to reduce prices with retail chains until the end of March.
United Nations data showed food prices hit six-year highs in January after rising for eight consecutive months as economies continue to battle fallout from the COVID-19 pandemic.