The State Duma approved the abolition of some benefits for the oil industry, but gave small concessions in the payment of mineral extraction tax

The State Duma approved the abolition of some benefits for the oil industry, but gave small concessions in the payment of mineral extraction tax

The State Duma approved the abolition of some benefits for the oil industry, but gave small concessions in the payment of mineral extraction tax

MOSCOW (Reuters) – The State Duma of the Russian Federation agreed in three readings to abolish mineral extraction tax (MET) exemptions for mature and mature oil fields, concessions on extra-viscous oil production and export duties, but approved concessions to MET for companies operating in Tatarstan and in Yamal, follows from the document on the website of the State Duma.

The cancellation of these benefits, as well as the clarification of the income-added tax (APT) regime, should additionally bring to the treasury, according to the calculations of the Ministry of Finance, about 220 billion rubles a year.

According to a document on the State Duma website, companies operating in Tatarstan and Yamal will receive a tax deduction, which will be provided if the price of Urals oil in the tax period exceeds the base oil price set by the budget (in 2021, $ 43.4 per barrel ).

According to VTB (MCX: VTBR) analysts, Tatneft (MCX: TATN) and Gazpromneft (MCX: SIBN) will be able to take advantage of the deduction. The maximum amount of deduction from the start of application at the field is set at 36 billion rubles.

The State Duma also agreed on the provision of mineral extraction tax benefits for the Vankor and Priobskoye fields of Rosneft (MCX: ROSN).

According to the draft budget for 2021-2023 submitted to the State Duma, tax benefits for Vankor and Priobsky will entail shortfalls in budget revenues of 36.41 and 45.96 billion rubles, respectively. Vankor benefit is provided in the form of a cut-off price change from the base price to $ 25 per barrel and subject to the creation of external infrastructure facilities, and to Priobka, provided that the price of Urals oil exceeds the base oil price in the reporting tax period ($ 43.4 per barrel in 2021).

According to the draft budget for 2021-2023 submitted to the State Duma, the introduction of a reverse excise tax on ethane and liquefied petroleum gas (LPG) from January 1, 2022 will cost the budget 14.7 billion rubles.

(Olesya Astakhova, Maxim Nazarov, Daria Korsunskaya, Oksana Kobzeva. Editor Dmitry Antonov)

Leave a Reply

Your email address will not be published. Required fields are marked *