Russia drops VAT and import tax on metal scrap

Archiv – The Brussels-based Bureau of International Recycling (BIR) welcomes the decision by the Russian government to suspend import duties on ferrous and some types of non-ferrous scrap, which formerly were of 5%, for a period of 9 months.Russia | The Brussels-based Bureau of International Recycling (BIR) welcomes the decision by the Russian government to suspend import duties on ferrous and some types of non-ferrous scrap, which formerly were of 5%, for a period of 9 months. The decree will come in power on January 1, 2009, says the world recycling body.
Also, the Russian Duma has cancelled VAT on operations with steel scrap to prevent fraud, which market participants believe to be a healthy measure for the domestic market as well as for export activities.
The roll products subject to zero duty are flat iron or non alloyed steel products not wider than 0.6 meters for industrial automobile assembly.
As per report, the change in the duty is being introduced because some steel mills have stopped supplying metal to automobile plants or are about to do so in connection with the car industry’s mounting debts. Correspondent amendments to the Tax Code were made last Friday by State Duma at the second and the third readings.