The Minister for Integration and Macroeconomics of the Eurasian Economic Commission and a former adviser to the President, Sergei Glazyev, proposed to fight inflation with the help of commodity export taxes, as prices are rising. He expressed this view in a speech to the Eurasian Congress.
In his view, the measures taken now to combat inflation are debatable. “I think the best way would be to protect our economy from the wave of inflation coming from outside, using the tool we actively used in 1992-1993. – Imposing export taxes on inflating commodities that are inflating prices, ”he said.
The EEA Minister proposed financing investment programs aimed at additional revenue. In particular, it will increase the substitution of imports, which in turn will satisfy the market for goods and reduce inflation already, as a result of increasing the supply of its goods.
To some extent, the government is already following Glazyev’s recommendations. As of June 2, the issue has been in place in Russia. It sets a floating rate for the export of wheat, corn and barley, which is calculated on the basis of price indicators, with a cut price of $ 200 per tonne of wheat, $ 185 per tonne of corn and barley. The government intends to use the funds raised to provide subsidies to agricultural producers.
In addition, in June, the government approved the imposition of temporary obligations from 1 August to 31 December this year for the export of non-ferrous and ferrous metals outside the Basque Country. The fees are combined and consist of a basic and a specific rate. The base rate is 15%, the value of the specific rate is calculated according to the type of metal (for non-ferrous metals) or the level of processing of the products (for ferrous metals), taking into account the dynamics of world prices.
Glazyev also stated in the session that the Russian monetary authorities are creating the conditions for lending to the economy at very high lending rates, which is not in line with world experience. Fees are above the rate of return in most industries, he said. As a result, Russian companies are often unable to compete.
Grigory Marchenko, an adviser to the Eurasian Development Bank, the moderator of the debate, spoke out against it: I’ve been hearing this for years. In any case, I respect your point of view. But like the former president of the Central Bank [Казахстана] I can’t say I totally agree with him. “
Last year, Glazyev blamed the Central Bank for the March fall of the ruble and proposed the introduction of a tax on foreign exchange transactions, which he believes would help fight speculators. In response, the Central Bank, according to Vedomosti sources, asked the Ministry of Economic Development to restrict the information activity of the former councilor to the President of the EEA, the Minister of the EEA.
In the week of November 23-29, Russian consumer prices rose by 0.46% compared to the previous week, the highest since the beginning of July. According to the Ministry of Economic Development, annual inflation reached 8.38% on November 29 and 8.05% on November 22.