Volga Baikal AGRO NEWS Update on the Agricultural Machinery & Duties !!!

In the State Duma they want to slash to zero a duties on harvesters

Volga Baikal AGRO NEWS Update on the Agricultural Machinery & Duties !!!

In the State Duma they want to slash to zero duties on harvesters.

The Ministry of Agriculture sees the need to reduce the burden on farmers.

The Ministry of Agriculture offered to slash to zero duties on agricultural machinery in order to reduce the costs of farmers. Duties on such equipment are lower than in the automotive industry: 5-10% VS15%. In addition, when importing, in addition to duties and VAT, a waste fee is paid, which preserves the barrier to import. However, analysts believe that such a measure can help farmers, but agree with domestic machine builders who advocate zeroing only for equipment that is not manufactured in the Russian Federation.

The Ministry of Agriculture of the Russian Federation is working on the possibility of zeroing import duties on agricultural machinery, said the head of the ministry Dmitry Patrushev following the results of the government’s report in the State Duma. “In order to reduce the costs of agricultural producers, the issue of zeroing import customs duties on agricultural machinery is being further worked out,” he told reporters after the government’s report in the State Duma.

Now import duties for agricultural machinery are 5-10%, depending on the type of agricultural machinery. Earlier, the EEC has already zeroed duties on imports of a number of goods, including construction materials and raw materials for baby food. The Ministry of Economy said that this would prevent a shortage of critical goods on the market and “reduce the price increase for the end consumer.” According to Kommersant, so far a proposal of the Ministry of Agriculture has only been received by the ministries.

Rosspetsmash (the lobby of domestic machine builders) believes that “in the interests of the modernization of the agro-industrial complex and the development of agricultural machinery, it is possible to reset customs duties exclusively on agricultural machinery, the analogues of which are not mass-produced in the Russian Federation.” These are, in particular, self-propelled potato harvesters, beet harvesters, gardening and viticulture equipment, and so on, they indicate. “According to the needs voiced by the Ministry of Agriculture to the factories, domestic manufacturers are able to provide the necessary supplies for the remaining segments in full,” – Rosspetsmash points out, adding that “Belarusian companies will be happy to replace some of the imported equipment.”

Dmitry Babansky from SBS Consulting believes that it is really worth zeroing import duties on a line that is not produced in the Russian Federation:

This is just the world practice of healthy protectionism. The effect of zeroing the duties, however, is higher — 15%, we have seen on the example of the electric car market,” the analyst notes. At the same time, in addition to the duty on the import of agricultural machinery into the Russian Federation, 20% VAT and waste duties are also paid, that is, zeroing the duty will only partially reduce the costs of consumers when buying foreign equipment.

Source: Kommersant.ru

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