Customs Union sets zero tax on grain imports

Today the Customs Union comprising Russia, Belarus and Kazakhstan has set zero import tax on wheat, rye and oats, Interfax-Kazakhstan reports. Currently the import tax on grain makes 5%. The zero tax will be in effect until June 30, 2011. Earlier Russia’s Grain Union proposed the idea of zeroing the tax on the whole grain group including wheat, rey, barley and corn. Arkadiy Zlochevskiy, head of the Grain Union, explained the need for zero tax by saying that a number of regions hit by severe drought are expected to face grain shortages. Russian traditionally imports grain as part of its cross-border trade in the amount of 0.5-1 million tons a year.