Russia discusses drastic plan to cut tax on imported chicken

The tax cut plan was published by Russian news agency RIA last week, citing an industry source. The possible tax cut was first discussed during a meeting between officials from the Russian Ministry of Agriculture and major poultry producers in the country. According to RIA, they have been in a constant dialogue on the topic of rising poultry and egg prices since last year. Chicken and eggs are the most popular animal protein available to Russians. The domestic demand has grown in the past 12 months, while poultry production in Russia has declined this year after some producers were hit by outbreaks of bird flu.

Poultry import quota

The Russian quota for importing poultry during 2021 is set at 364,000 tonnes with zero tax for all countries. Outside the quota, the tax rises up to 65%. That percentage is now under discussion. “It was noted at the meeting that government is discussing a reduction of the import tax on chicken meat from Brazil, which is one of the main suppliers of this product, as a possible stabilisation measure. This measure could be taken if other solutions are insufficient,” said the RIA.

Other proposals, Reuters reports, include a higher limit on subsidised loans and an extension of existing loans to Russian poultry producers. Earlier, the Russian government imposed restrictions on grain exports in an attempt to slow food inflation. The situation has worsened due to the Covid-19 pandemic and falling family income.