Russia's reintroduction of value added tax (VAT) on domestic steel scrap could lead to surge in scrap exports, market participants told Metal Bulletin at the annual Regional Trade conference in Moscow last week.
VAT on domestic steel scrap was abolished in 2008, but an 18% tax was reintroduced on January 1, 2018, mainly to boost government income, sources said. However, there is no VAT on scrap exports. "Scrap collectors may restart scrap exports to [be in a position to reclaim at least some] VAT," Maxim Khudalov, director of...