RT Ministry of economy to establish digital control over scrap metal recycling market
Tatarstan is the first Russian region to introduce a digital control system for settlement operations in the turnover of ferrous and non-ferrous metals. The state regulator of the process is the Ministry of economy of the Republic of Tatarstan. Industry digital solution will improve the efficiency of procurement of secondary raw materials and will contribute to the "whitening" of this sector of the economy.
The Ministry of economy of the Republic of Tatarstan together with the settlement non-Bank credit organization "United cash" announced an experiment to connect small and medium-sized businesses of the Republic working in the field of procurement of secondary raw materials to the new digital platform "procurement management Center". Cooperation is conducted within the framework of the Agreement on the development of the region in the field of procurement, storage, processing and sale of non-ferrous and ferrous metals, concluded by the parties at the forum "ZILANT" in Kazan. "Procurement management center" will automatically carry out accounting, financial, tax control over all cash flows and transactions concluded in this market.
"Digital" procurement accounting Center" is a synergy of digital and management solutions for advancing the goals of three national projects at once: "Digital economy", "Small and medium-sized entrepreneurship and support of individual entrepreneurial initiative", "Ecology". Platform created to meet the needs of business in the modern tool for instant cashless payments and reduce operational costs as well as the interests of the state in improving the sector's efficiency and credibility, growth of tax revenues in the regional budget, - said the Minister of economy Farid Abdulganiev. - "The center of the account of purchases" is the intellectual decision of the Republic of Tatarstan having large-scale strategic value. I am sure that as a result of the project implementation, the decision will become the Best practice, which through the Agency for strategic initiatives we will be able to replicate throughout Russia as the expertise of our Republic in the digitalization of economic sectors."
"Procurement management center" is an analytical platform based on artificial intelligence, which accumulates data on each transaction concluded in Tatarstan in the field of scrap metal turnover, verifies its legitimacy and the tax status of its participants. The system can monitor compliance with licensing requirements and the validity of quality passports, compliance of product balances with financial flows. An integral part of the project will be the integration of the multi-currency payment service Wallet One, which will make the turnover of all cash appearing in this market transparent. Today the company lomozagotovitel from Tatarstan participates in experiment: Production Association "Promvest", negotiations with seven more companies are under consideration and contracts.
The Ministry of economy of the Republic of Tatarstan exercises state control and issues licenses for services in procurement, storage, processing and sale of scrap metal.
Using digital decisions of the Ministry of economy plans to exclude from the market raw materials, zagotavlivali shadow and criminal methods, using the complete mapping of sites of buying up, storage and distribution of scrap metal in the region, update the registry key scrap procurement and processing scrap supplier at the expense of those players who will come "out of the shadows". Thus, at the points of reception of scrap will be carried out explanatory work for all employees of the industry so that they are officially registered as self-employed: without risks, they received non-cash payment for the supplied raw materials and paid a fixed tax under a simplified scheme.
"The digital platform will allow to collect general statistics on the metal processing sector in the region: to assess the dynamics of the turnover of purchased raw materials, the structure of financial and commodity flows, the possible amount of tax deductions, to increase the percentage of self-employed citizens officially working as scrap collectors, - said the Chairman of the Board of rnco "United cash" Sergey Bludov. - Digitalization is designed to increase not only the level of state control over the industry, but also the efficiency and profitability of the business of companies-lomozagotoviteley".
The expected economic effect of the project, according to preliminary forecasts, within the first year will be a double increase in key indicators for the formation of the tax base and, on the contrary, reduce the costs of regional and municipal budgets.