Budget revenues from Phase 2 of investment quotas programme to exceed those from rates hike by one third – FSA
VARPE earlier proposed to raise the fee for catching crab an alternative to crab auctions
Simultaneous effect from investment auctions and increase of dues for the use of aquatic biological resources (ABR) is more profitable for the budget system than just hiking the rate of dues, according to the press release of the Fishery Shipowners Association (FSA, numbers 28 sea fishing companies accounting for 25% of the all-Russian marine catch).
“The increase in rates of dues for the use of ABR planned from 1 January 2023 and foresees the hike of dues for crab catching to RUB 80 thousand per year. Actual size of rates for crab is to be increased 15 times. When the law on the second phase of investment quotas comes into force, auctions will bring additional RUB 200 billion into the budget,” says FSA.
An alternative to crab auctions was earlier offered by another organization in the industry – All-Russia Association of Fishery Enterprises, Entrepreneurs and Exporters (VARPE, comprises 70 major fishery industry players accounting for over 90% of the catch in Russia’s territorial waters). Its proposal was to raise the fee for catching Kamchatka crab from RUB 30,000 to RUB 224,700. That would let increase tax revenues by RUB 13 billion per year, or by RUB 202 billion over 15 years.
FSA says the that the hike of rates will about RUB 130,000 per tonne of crab. “The comparison of expected revenues from the two mechanisms shows that auctions are more profitable for the budget systems. Taking into account the planned hike of rates for crab and investment auctions, the budget is to get at least RUB 280 billion over the quota period (15 years). That is one third more than with the proposed increase in rates (RUB 202.5 billion). Besides, the replacement of auctions with increased rates will postpone the receipt of additional funds to the federal budget for a significant period,” says FSA.
The bill on introduction of amendments into the Federal Law on Fisheries and Conservation of Aquatic Biological Resources was submitted to the State Duma of the Russian Federation in late July.
Related link:
Bill on Phase 2 of investment quotas submitted to State Duma ‒ VARPE >>>>
