Russia: FinMin sticks to oil sector tax reform

The FinMin does not plan changes to the oil sector tax reform, deputy FinMin Ulya Trunin said on Wednesday. Thus, the oil export duty should fall to 30% in 2017 from 40% in 2016 in accordance with initial plans. Trunin added that the NDPI on oil should rise in line with plans, but he did not comment on whether the NDPI tax on gas for Gazprom will also rise next year. In August, the government has reportedly discussed plans to maintain increased taxation on the oil and gas sector in 2017.

Extending the higher tax rates into 2017 is expected to contribute RUB 200bn to the budget of which RUB 100bn will come from Gazprom. Reportedly, Gazprom will be taxed additionally by RUB 70bn putting total additional revenue from the gas major at RUB 170bn. On the oil sector, the government plans to hike NDPI, reduce export duties to 30% and introduce the added revenue tax for some (mostly new) oil fields.

 

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