Russia Weighs Increased Tax on Wheat Exports If Price Rises

(Bloomberg) -- Russia is considering imposing a higher tax on wheat exports, based on a formula that links the tax rise to increases in the price of the commodity.

Under the formula, the tax will rise if prices reach $375 a ton and again if they hit $400 a ton, according to documents published on the government’s proposed regulations website. 

Russia could revise the formula for the tax if there is a significant increase in global prices, Agriculture Minister Dmitry Patrushev said at a government meeting in November. The levy has been in place since mid-year in an effort to slow sales abroad and cool domestic food inflation. Russia also plans to set a grain-export quota again in the first half of next year, he said.

Prices are still trading lower than the level at which the tax would be raised. Russian wheat export price from Black Sea ports was at $335.50 per ton last week.

Russia also plans a wheat export quota of 8 million tons for Feb. 15 through June 30, according to a statement from Economy Ministry, on Friday.

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