The Russian government has adjusted the previously proposed parameters for increasing coal production taxes from 2025. The surcharge to the mineral extraction tax rate (MEY) for thermal and coking coal is still set at 10% of the exceeded thresholds in the Far East ports, while the non-taxed price has been raised to $120/t compared to $100/t in the previous version, for coking coal the price has been raised to $167/t compared to $140/t.
The price threshold of anthracite will be linked to PCI quotations in ports of the Far East and will amount to $135/t. It is also suggested that prices in the northwest and southern ports should also be taken into account.
This initiative of the government seeks to compensate for the loss of income from the abolition of export duty, but the increase in the tax burden on the coal industry may adversely affect production and investment activities.
Moreover, the authorities do not specify the source of quotations, which will be used in the calculations.
Amid falling prices on the international market, rising production costs and transportation costs, exporters are already facing losses in most export directions. In recent years, the tax burden on coal miners has increased repeatedly.
Coal production in Kuzbass, Russia’s main coal mining region where high-quality material is produced, fell to 102.5 mio t in H1 2024. (-6.2 mio t or -5.7% y-o-y). Total export rail shipments in H1 2024 declined to 94.9 mio t (-10.9 mio t or -10.3% y-o-y
Source: CCA Analytics
