PRESS: Russian govt to complete tax maneuver in oil industry

MOSCOW, May 25 (PRIME) -- The Russian government has decided to complete the tax maneuver in the oil industry, and the oil export duty can be zeroed already by 2024, business daily Vedomosti reported Friday citing sources.

The decision was made by President Vladimir Putin, while his press secretary Dmitry Peskov declined to comment.

“After more than two years of disputes of oil companies and the Finance Ministry the oil and gas tax maneuver will be completed. Such decision was made by Russian President Vladimir Putin in late April,” the daily said.

The tax maneuver – an increase of the mineral extraction tax (MET) and reduction of export duties – was launched in 2015. The reform was set to be completed in 2017, when duties were expected to fall to 30%, but in 2016, the Finance Ministry proposed to zero them and raise the MET in proportion.

The Finance Ministry proposed to finish the maneuver during six years – to reduce the export duty by 5 percentage points annually and bring it to zero by 2024, raising the MET in proportion, the sources said. This will give the budget 1–1.6 trillion rubles depending on oil prices, a government official said.

(61.4090 rubles – U.S. $1)

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