VARPE proposed considering alternatives to crab auctions by State Duma
The initiative foresees raising Kamchatka crab catching fee and obliging large companies sign shipbuilding contracts
German Zverev, President of All-Russia Association of Fishery Enterprises, Entrepreneurs and Exporters (VARPE) has sent a letter to Vyacheslav Volodin, Chairman of the State Duma of the Russian Federation concerning the bill on Phase 2 of investment quotas, says VARPE. He asks to consider alternatives able to enhance financial efficiency of crab catching including increased fee for using aquatic bioresources. The letters were sent in April to the Government and the Ministry of Finance. There is a proposal 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. With the current rates, annual tax revenues total RUB 458.6 million, or RUB 6.9 billion over 15 years. Besides, there is a proposal to oblige large users of crab quotas (under agreements of 2018) sign contracts for construction of fishing ships at domestic shipyards. “Investment tax” is to be paid by companies with quotas exceeding 1,000 tonnes. According to the proposal, they are to build one ship per each 1,000 tonnes caught before the expiry of the quota period (up to 2033).
According to the letter, the increase of the natural resource rent and investment tax can ensure over RUB 200 billion of the budget revenues, long-term loading of shipbuilding companies and guaranteed development of mid-size and small businesses.
VARPE asks Vyacheslav Volodin assign the ad hoc committee of Vyacheslav Volodin with looking into the alternative proposed by the association.
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 2022. The programme is to begin in 2023. In the result, the Far East is to see redistribution of 633,550 tonnes of aquatic bioresources.
In his letter, German Zverev emphasized that the targets set by Phase 1 of the programme – distribution of investment quotas for fish in 2017 (20% of the total allowable catch) and in 2019 (50% of the total allowable catch of crab) were not achieved. The Auditing Chamber found the results of crab auctions unsatisfactory.
