The Ministry of Industry and Trade has decided to include equipment for metallurgical combines from the list of the imported goods for which VAT is nullified

The Ministry of Industry and Trade has decided to include equipment for metallurgical combines from the list of the imported goods for which VAT is nullified. Thanks to that within only 3 years  metal producers can save 10 billion roubles. By the middle of April the Ministry brought to the Federal Tariffs Service the project for regulations where they offered to include equipment for metallurgical combines from the list of the imported goods for which VAT is nullified. In particular, the agency offered to return VAT for roasting furnaces, uninterrupted casting machines etc. The explanatory note told that in exchange they offered metal producers to buy an analogical equipment from Russian producers, Uralmash Plant in particular. Since 2009 the enterprise realizes the program of fundamental reconstruction of metallurgical, welding and mechanisms assembling shops. The plant claims that it’s able to substitute the imported goods. However the manager for assets of UK BCS N. Solobuta thinks that despite investment to production upgrading now Uralmash is unable to supply to metallurgical companies the products comparable to the western analogues, and metal producers agree with that.


In the end of April Russian Steel uniting Metalloinvest , Severstal, MMK , Evraz Holding Group, Mechel, NLMK, TMK and Industrial Metallurgical holding appealed to the Ministry of Industry and Trade with a letter requesting to cease the project for regulations elaborated by the agency. They claim in the letter as well that the Ministry’s solution about the comparability of the domestic and imported equipment is too premature.


Within the lastt 10 years the Russian metallurgical companies have invested into production development over 1 trillion roubles placing the orders for equipment to Russian machine builders. They emphasize in the letter to the Ministry that they can loose 10 billion roubles in 2011 – 2013 because of the project for regulations elaborated by the Ministry. It will cause negative impact to the planned investment agreement of the sector. As a result the Ministry has met the metal producers’ request. Several days ago the Vice  Minister of Industry and Trade A. Dementyev sent to FTS the letter asking not to exclude equipment for metallurgical combines from the list of the imported goods for which VAT is nullified. He states that the internal market of metallurgical equipment should be additionally analyzed.


Translated by Nadezhda Poltoratskaya


Source: http://www.rusmet.ru/news.php?act=show_news_item&id=56824

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