Palm oil may be stripped of tax exemptions according to a report by the Russia 24 TV channel. The State Duma and the government have agreed a new position on it: the VAT on palm oil is to go back to 20% instead of the current 10%, a bill to that effect has already been submitted to the lower chamber of the Russian parliament.
Dairy Industry Has No Alternative to Palm Oil
Palm oil poses no health risks and on a number of metrics it is superior to sunflower oil and fish oil. It is used primarily in the manufacture of food stuffs and confectioneries as well as to make a dairy fat substitute. The use of palm oil is on the rise, outpacing other types of vegetable oils, specifically soybean and rapeseed oils and since 2016 palm oil's been the most widely manufactured vegetable oil, being produced in 2.5 times greater quantities than sunflower oil.
Russia buys half a billion dollars worth of palm oil every year. In this country it's being consumed more and more, however, still not as much as in some European countries.
"Exports of our confectionery industry is growing and the price of palm oil on the global market is falling so I don't see imports of palm oil into Russia decreasing any time soon," believes Analytical Center expert Elena Razumova. The dairy industry literally has no alternatives to palm oil. Another parameter is the price: palm oil is a lot cheaper than sunflower or rapeseed oil, the expert stressed.
The State Duma is going to review the proposed amendment next week.
Source: Russia 24