MOSCOW, Mar 26 (PRIME) -- The Russian budget will fall short of 20–30 billion rubles after the introduction of an added oil income tax if production does not increase, Alexei Sazanov, head of the Finance Ministry’s tax department, said at a meeting of the budget committee of the State Duma on Monday.
“Under our estimates, if there is no output increase, the shortfall will amount to about 20–30 billion rubles in the Federation… only the federal budget income is at risk. Revenue of regions, in our estimate, will benefit in any case. Even if production does not increase, just on reduction of the tax burden,” Sazanov said.
The government has to tailor the existing mineral extraction tax (MET) for each project.
A bill on added income tax in the oil industry was submitted to the State Duma, the parliament’s lower chamber, in November 2017 and it has not passed the first reading yet. The difference between the cash flow and capital expenditures is seen as the taxable base.
(57.1072 rubles – U.S. $1)
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