Official: Govt, oil firms agree on main parameters of tax maneuver

MOSCOW, Jun 14 (PRIME) -- The government and oil firms have agreed on main parameters of the tax maneuver, namely to zero the oil export duty in six years by cutting it by 5 percentage points annually with an equivalent growth of the mineral extraction tax (MET), Alexei Sazanov, head of the Finance Ministry’s tax and customs policy department, told reporters Thursday.

“We have agreed in principle that we will gradually zero export duty in six years and equivalently raise the MET,” he said.

An agreement was also reached on application of a negative excise, but details, in particular, an additional floating excise, are being discussed, Sazanov said.

Under the oil tax maneuver launched in 2015, Russia planned to gradually reduce the oil export duty and simultaneously raise the MET. But the maneuver was suspended, and oil export duty for 2018 was kept at 30%, the level of 2017.

First Deputy Prime Minister, Finance Minister Anton Siluanov said in late May that the government decided to finish the tax maneuver.

Sazanov also said that the government continues to discuss both gradual reduction of excise duties on oil products from 2019 and a floating excise, but no decision has been made yet.

The ministry has proposed to provide a negative excise to oil refineries of sanctioned companies even if they do not produce gasoline, he also said.

The ministry does see a need to further reduce oil product excises with the current oil price, Sazanov also said.

“To further reduce excises – definitely no. If the oil price does not grow extraordinarily to U.S. $100 or $90 per barrel, and amid the current price conditions there will certainly be no further reduction of excises,” he said.

The government earlier announced a plan to cut gasoline excises by 3,000 rubles per tonne and diesel fuel excises by 2,000 rubles per tonne from June 1 and by additional 700 rubles per tonne from July 1 on a condition that large oil companies hold the prices at the level of May 30.

(63.1164 rubles – U.S. $1)

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