Ministry of Finance wants to cancel a number of benefits in the oil industry – Siluanov

Ministry of Finance wants to cancel a number of benefits in the oil industry – Siluanov

Ministry of Finance wants to cancel a number of benefits in the oil industry - Siluanov

The Ministry of Finance proposes to change the parameters of the income-added tax (AIT), which was introduced in 2019 as an experiment on taxing oil and gas companies, in order to restore the falling budget revenues to the level that was agreed upon when the regime was introduced, the head of the ministry Anton Siluanov told reporters.

“We are talking about changing the parameters of the AIT. In fact, we assume the restoration of the shortfall in budget revenues to the level that was previously agreed upon when this regime was introduced. When it was introduced, we planned the amount of additional revenues that would go to the oil sector – about 40 billion rubles per year. Now we see that it is many times more. Therefore, justice has been restored here, “he said.

“You know that we have introduced a 50% limit on the offset of losses from previous years, approximately the same as for income tax, changed the coefficients to the MET. Under the MET, we also agreed to revise a number of benefits, which, in our opinion, are ineffective.” – added Siluanov.

“We are talking about depleted fields, fields with viscous and extra-viscous oil. Yes, this raises certain questions from oil companies, but (..) what was the point – these benefits were provided, especially for depleted fields, without taking into account the real degree of depletion, they took information according to the 2006 accounting, there was no actualization, “Siluanov complained.

“Now we are talking about what needs to be done – to abolish the depletion benefits and certain exemptions on export duties. The same goes for viscous and super-viscous ones. There are great benefits, the share of such deposits is about 1% of all production. Even in conditions of Russia's reduction of production volumes oil within the framework of the agreement with OPEC, nevertheless, even at these complex fields, active production is underway, because there are incentives, and in ordinary fields, where there are no benefits, they are not produced, “he said.

“We agreed to change the procedure for granting benefits for such fields associated with difficult production, and to offer them to transfer production to the terms of the AIT,” the head of the Ministry of Finance said.

Commenting on the revision of duties, Siluanov said: “There are a number of export duty exemptions, which are foreseen for us primarily for mature fields.”

‚ÄúTherefore, when it comes to such a global revision of tax expenditures, preferences, our logic is that incentives should stimulate new investment. We see that by providing these incentives, no new investment occurs. Therefore, this approach will be implemented if We provide an incentive, we take the company's investment obligations. If we do not see that the incentive somehow works for new investments, jobs, we believe that such a benefit should be canceled. Therefore, the export duty exemption for mature fields will be canceled. We estimate additional income from this measure is about 30 billion rubles, “he said.

According to Siluanov, the Finance Ministry is counting on additional revenues “from depleted deposits in exchange for income tax – about 100 billion rubles.” “We are planning to receive additional income for the personal income tax in general – about 80 billion rubles,” he added.

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