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Russia Proposes Significant Increase in Environmental Tax Rates for Manufacturers and Importers

Russia is proposing a substantial increase in environmental tax rates for manufacturers and importers, potentially impacting various industries. The Ministry of Natural Resources and Ecology has drafted a decree outlining these changes, which could significantly raise costs for businesses producing goods like clothing, appliances, packaging, plastics, and batteries.

The proposed increases are substantial, with some rates more than quadrupling. Textile manufacturers could face a fee of 89.2 thousand rubles per ton, a 4.5-fold increase. Battery manufacturers could see rates rise to 169.8 thousand rubles per ton, 3 to 3.5 times higher than current levels. Fees for different types of packaging could increase from 6.7 to 89.2 thousand rubles, depending on the material.

The Ministry of Natural Resources states that the draft decree is a collaborative effort with other government bodies. The Ministry of Industry and Trade, the Ministry of Agriculture, and Rosprirodnadzor are involved in the development of the document, acting on behalf of the President of Russia.

Industry representatives have voiced concerns about the potential impact of these increased rates. Anton Guskov from the Association of Trading Companies and Manufacturers of Electrical Household and Computer Equipment (RATEK) highlighted that household electronics manufacturers, whose products are often heavy, would be particularly affected. Dmitry Romanyuk, Vice President for External Communications at A Zet, suggested that battery prices could increase by 10–15% due to the higher environmental tax.

The environmental tax is part of the extended producer responsibility (EPR) system, a payment for failing to meet utilization rate requirements. Manufacturers can avoid the tax by independently recycling waste or by using specialized companies registered with Rosprirodnadzor.