Russia is reportedly considering the abolition of export duties on gold, as indicated by the director of the finance ministry’s tax policy department, as reported by state news agency TASS on Tuesday. Russia, ranked as the world’s second-biggest gold miner in 2022, is contemplating this measure in response to changes in the mineral extraction tax.
The potential abolition of export duties on gold is being considered alongside an increase in the mineral extraction tax, with the aim of compensating for budget losses resulting from declining export revenues. The lower house of Russia’s parliament recently passed a bill to raise the mineral extraction tax on gold from June to December 2024, with the expectation of generating 15 billion rubles for the budget by the end of the year.
Russia’s largest gold producer, Polyus, reported a 12% increase in net profit to $1.7 billion last year, attributed to heightened production and sales. The consideration of abolishing export duties on gold reflects Russia’s efforts to navigate changes in tax policies and maintain the competitiveness of its gold mining industry.