Russian budget may gain $6.3 bln from extra tax on exporters -sources

One of the sources said the decision could be made as early as the end of this week. Russia's budget deficit for January-August narrowed to 2.36 trillion roubles ($24.6 billion), or 1.5% of GDP, driven by falling revenues, but also surging spending, particularly on what Moscow calls its "special military operation" in Ukraine.

Russia's budget may get an additional 600 billion roubles ($6.34 billion) per year from a planned extra tax on exports of some metals, fertilisers and some other commodities, seven sources told Reuters on Thursday. Russia has been seeking ways to replenish its deficit-stricken state budget at a time of increasing military spending, while exporters enjoy additional revenues thanks to the weak rouble rate.

The government has already introduced a one-off windfall tax on big business, aimed at raising 300 billion roubles. President Vladimir Putin in June cited positive data points to laud Russia's economic health and said surging defence spending was needed to boost national security.

The new tax, which may be imposed from October, would apply to all major export contributors to Russia's gross domestic product (GDP), excluding oil, gas, grains, timber, machine building and scrap metal, according to the sources. Three sources said the Finance Ministry has proposed setting a duty rate of 4% from the custom price when the rouble is traded at 80-85 per $1.

The proposals also call for a rate of 4.5% when the rouble reaches the level of 85-90 roubles per $1 and 5.5% at the rate of 90-95 roubles per $1. It would reach a maximum level of 7% if the rouble trades weaker than 95 per $1, as now.

"There are two goals: to lift the pressure from domestic market prices and obtain additional earnings," a government source said. The finance ministry and the government declined to comment on the proposals.

Three sources said that the tax could be put in place until the end of 2024, while two sources said that it could only work until the end of the current year. One of the sources said the decision could be made as early as the end of this week.

Russia's budget deficit for January-August narrowed to 2.36 trillion roubles ($24.6 billion), or 1.5% of GDP, driven by falling revenues, but also surging spending, particularly on what Moscow calls its "special military operation" in Ukraine. A source at an export-oriented company said the "spontaneous" tax decisions by the government discourage investment.

"No one will invest strategically in a country where the... business conditions may significantly change for one day or retrospectively," the source said, speaking on condition of anonymity as he was not authorised to talk to the media. ($1 = 94.5750 roubles)