Russia moves to excise tax on imported steel products

The Russian Finance Ministry has prepared and submitted for approval a bill introducing an excise tax on steel imports, said State Secretary, Deputy Finance Minister Alexei Sazanov. Speaking to local media, Sazanov said that this initiative followed requests voiced by industry representatives during numerous government meetings. He confirmed that the bill has already been sent to relevant government agencies for consideration, and now the authorities are waiting for feedback.

The implementation dates are linked to the approval process

According to Sazanov, the timing of the introduction of the new excise tax will depend on the pace of interdepartmental approvals. However, this measure is expected to enter into force during the current budget cycle. "In any case, this will happen either sometime in 2026 or on January 1, 2027, as soon as the approval process is completed," Sazanov said, adding that the proposal has already been sent to the departments for consideration.

Mechanism for mirroring the internal excise tax system

The proposed excise tax mechanism for imported products is expected to have the same structure as the existing system applied to domestic steel. manufacturers.

In January 2022, Russia introduced an excise tax on steel production, set at 2.7 percent of the monthly selling price of slabs. From August 2022, the tax rate is subject to a zero threshold if the price of slabs falls below 30,000 rubles/ton

Part of broader measures to support the steel sector

The initiative is part of a broader package of measures aimed at supporting the Russian ferrous metallurgy sector. The proposal to introduce an excise tax on imported steel was previously discussed at a government meeting with the participation of First Deputy Prime Minister Denis Manturov and Deputy Prime Minister Alexander Novak.

Earlier, Minister of Industry and Trade Anton Alikhanov also outlined additional support measures, including a possible postponement of the MET for iron ore and excise duty on liquid steel until the end of 2026. However, the Russian Ministry of Finance and the Russian Ministry of Economic Development opposed the postponement of these measures. taxes.

At the same time, the authorities considered the possibility of granting a three-year exemption from excise tax for strategic investment projects after the completion of their investment phase. Overall, the proposed tax on imported liquid steel products signals Russia's ongoing efforts to balance support for domestic industry with fiscal policy, while potentially changing trade flows in the steel market.