Russia exempts imported production equipment from VAT

05 October 2011 16:12  [Source: ICIS news]

MOSCOW (ICIS)--Russia has made imports of some production equipment exempt from value added tax (VAT), Russia’s government said on Wednesday.

From October 5, imports of equipment, including spare parts, to produce emulsion and suspension polyvinyl chloride (PVC), vinyl chloride monomer (VCM), caustic soda and chlorine are exempt from VAT if similar equipment is not produced in Russia, said the government.

The regular rate of  Russian VAT is 18%.

The exemption is intended to support projects, notably the €750m ($1bn) PVC plant being built by RusVinyl in Kstovo, Nizhny Novgorod region, Central Russia.

The Kstovo plant will produce 330,000 tonnes/year of PVC and 235,000 tonnes/year of caustic soda.

RusVinyl is parity-owned by SIBUR and SolVin, which is owned by Belgiums Solvay (75%) and Germanys BASF (25%).

($1 = €0.75)

For more on VCM, PVC and caustic soda, visit ICIS chemical intelligence 

By: Sergei Blagov
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly