UPDATE3: Min: Govt to start completion of oil tax maneuver in 2019

(Adds comments in paragraph 8)

ST. PETERSBURG, May 25 (PRIME) -- The Russian government plans to start completing the tax maneuver in the oil industry in 2019, First Deputy Prime Minister, Finance Minister Anton Siluanov said Friday at the St. Petersburg International Economic Forum.

“As far as oil companies are concerned, we plan to complete the so-called tax maneuver and reduce export duties… We’ve already made a decision to cut excise duties on oil products from July 1, this is like the first part of the oil and gas maneuver that will be implemented starting next year,” he said.

Energy Minister Alexander Novak said that the government will still continue to discuss the tax maneuver in the oil industry.

“I hope that we will still be able to discuss (the completion of tax maneuver) with our colleagues from federal government authorities,” Novak said.

“You know our position, we believe that we should create such a mechanism to reduce the export duty by 2025 that will allow to complete modernization of plants. In any case we should reach a zero duty 2025, and how to reach it – there are various estimates,” he said.

Alexei Sazanov, head of the Finance Ministry’s tax and customs policy department, said that the ministry is currently developing a formula as a tax maneuver to reduce dependence of domestic fuel prices on global oil prices.

“As part of the completion of the tax maneuver, we are now working through systemic mechanisms for damping such a rapid change in the price of oil on the domestic market and in the wholesale segment, depending on the fluctuations of global oil prices. We are developing a formula that would reduce these risks. We need to find a system solution, because taking point solutions every time is wrong,” he said.

Deputy Prime Minister Dmitry Kozak said the government will make a final decision on the tax maneuver issue within two weeks.

Siluanov said that the government is currently finishing proposals on tax changes that will be in force during the next six years, he added.

The government plans to implement a whole range of budget and regulatory reforms to stimulate economic growth and plans to introduce new tax incentives to attract investors, Siluanov also said.

Siluanov also said that the government does not plan to introduce a sales tax.

The ministry also proposes to keep a personal income tax of 13% unchanged, but the final decision will be made by the government.

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