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This content was produced in Russia, where the law
restricts
coverage of Russian military operations in Ukraine.
(Adds quotes, detail throughout)
March 16 (Reuters) - Russia plans to set a windfall tax
on businesses at around 5% of excess 2021-22 profits, Finance
Minister Anton Siluanov said on Thursday, as Moscow seeks to
plug its budget deficit.
Companies' profits
dropped 12.6% in 2022, but the government plans to levy a one-off "voluntary" windfall tax of around 300 billion roubles ($3.98 billion) on big business in light of the widening deficit and a narrowing current account surplus, a year into what Russia calls its "special military operation" in Ukraine.
The levy will come into force legally from 2024, but the
finance ministry expects companies to make payments this year as
well, Siluanov said.
"We are now roughly forecasting a rate of around 5%,"
Siluanov said on the sidelines of a business congress in Moscow.
"We will count on it roughly meeting the parameters that we have
set for replenishing the federal budget."
Siluanov said corporate profits in 2022 of almost 26
billion roubles were a great result, but that the ministry also
wanted business to partially share this with the state.
"We would like it to be fair, there were various
estimates...we discussed larger amounts. But in the course of
discussions with business we agreed that it would be around 300
billion roubles," said Siluanov.
Siluanov said the mechanism would affect 0.1% of companies. Oil, gas and coal firms are
exempt
. The ministry also wants to encourage businesses to pay
this year, although an option for 2024 payment will be made
available.
He said the money would be spent on infrastructure, roads, education, healthcare and salaries for state employees.
"No money should be spared, he said. "It seems to me
that we should gladly make this decision and move forwards."
($1 = 75.4000 roubles)
(Reporting by Darya Korsunskaya; Writing by Alexander Marrow;
Editing by Kevin Liffey and Mark Trevelyan)
