Minister: Added income tax raises oilfield output by 2.9 mln tns

MOSCOW, Sep 2 (PRIME) -- Introduction of an added income tax as an experiment for some oilfields in 2019 pushed their production up by 2.9 million tonnes in the year as compared with 2018, Energy Minister Alexander Novak said on Wednesday at a government meeting in the Khanty-Mansi Autonomous District.

“We are analyzing results of the impact of the added income tax in 2019, it has made its contribution, and we are looking into it together with the Finance Minister. Our estimates show that combined oil production at the fields where the added income tax was applied grew by 2.9 million tonnes,” he said.

In the West Siberian brown fields, the tax increased output by more than 10% as compared with 2018, breaking the contracting trend. Production in the green fields in Western Siberia grew by almost 1 million tonnes, he said, adding that capital expenditures in the fields under the tax regime grew by more than 110 billion rubles.

(73.5849 rubles – U.S. $1)

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