Fin Min official: Added income tax shows efficiency on brownfields

MOSCOW, Apr 27 (PRIME) – Stocktaking showed that the mineral extraction tax (MET) for the depleted deposits worked unevenly and the deposits should be transferred to the added income tax, Deputy Finance Minister Alexei Sazanov said at a forum on Tuesday. 

"The mechanism of the MET for brownfields was formulated inefficiently because the support measures worked differently for different fields. Stocktaking showed that clearly. The depleted deposits asked for transition to the added income, this is one of the results of stocktaking," the official said.

But Tatneft Deputy CEO Azat Yagafarov said that the added income tax showed low efficiency on company assets. "We can apply the added income tax on brownfields… but it shows low efficiency, extremely low for our company," the official said.

Aide to Gazprom Neft CEO Pavel Karchevsky said that the company expects to balance the negative effect of the tax change on the Novoportovskoye field in three years.

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