Research institute on slashing THC rates: foreign shippers win, Russia's budget loose
In case the rates of terminal handling charges are reduced at Russian ports this will benefit only foreign companies, the Institute of Natural Monopolies (IPEM) told a 'round table' meeting.
The panel discussion "Regulation of Stevedoring Services at Seaports" was held at the Analytical Center of the Russian Government.
Analysts of IPEM believe that the decrease of rates and profits of stevedoring companies if the government decides to return to price regulation of rates for their services means lower costs and an increase of profits of shippers. In this case the tax on income derived from handling of imports and transits, will be lost completely to the state budget, and the foreign companies may turn out to be the only winning party who would benefit from the THC cuts, IPEM said.
The Institute of Natural Monopolies Research (IPEM) is a Russia-based independent research center founded in 2005. IPEM activities are aimed at the study of Russian economy natural monopoly sectors and associated industries in order to develop recommendations for existing problems solution and the branches potential realization.
