Russian min: Oil tax burden proposals require extra discussion

KERCH, Crimea, Sep 15 (PRIME) -- Proposals to increase a tax burden in the oil industry including through raising excise duties on fuel and the mineral extraction tax (MET) require additional discussion, Economic Development Minister Alexei Ulyukayev said Thursday.

“I think this idea lacks discussion, I know the idea. I believe this is not the best decision – the tax burden on the oil industry is quite big, and it is being revised too often, which creates uncertainty among investors. We would certainly like investors to come to us. This regards both excises and the MET,” he said.

The Finance Ministry initially offered to raise the rate of the MET on oil in 2017 by around U.S. $1 per barrel, or to 1,392 rubles from 473 rubles, which would allow the state to collect additional 200 billion rubles from the oil industry.

Kommersant business daily reported Thursday that the government could shuffle off part of the oil tax burden on consumers by raising excise duties on fuel.

(64.9737 rubles – U.S. $1)

End