26.09.2024, 09:52
Russia has postponed tax increases for oil companies
Source: OREANDA-NEWS
OREANDA-NEWS The government has changed plans to link the Urals price to the cost of transporting oil by sea to European ports. The tax increase for oil workers was postponed until September 2025, Kommersant reports.
Earlier, the president was asked to adopt economically sound rules for taxation of the industry instead of plans to link prices to the cost of oil supplies to Europe, where it is not actually shipped due to Western sanctions.
Currently, the highest value from the North Sea Dated is used to calculate the mineral extraction tax and the additional income tax (NDT, replaces the export duty and is levied on the proceeds from the sale of oil, minus the costs of its extraction and transportation) (the quote that the Argus pricing agency calculates based on the prices of five North Sea oil grades, including Brent) minus the differential of $ 20 per barrel or the price of Urals in Russian ports plus two dollars per barrel of transportation costs to European ports. The latter value is often higher, and it is mainly used for taxation of the industry.
Starting from October 1, the government planned to establish a procedure for calculating the cost of transporting oil by sea to European ports instead of a fixed value of two dollars per barrel and increase the cost of Urals by this amount to calculate taxes. The methodology was proposed by the Federal Antimonopoly Service (FAS) despite the fact that Russian companies practically do not supply raw materials to Europe, instead trading with India and China. If the transportation method was adopted, the cost of Urals for taxation could increase by about a dollar per barrel, which would additionally bring about 15 billion rubles per month to the budget.
Oil companies offered to set an oil price indicator for taxes, which would be closer to real conditions and supply directions, but the Ministry of Finance refused, citing the threat of a decrease in budget revenues.
Speaking at the SPIEF, Russian Minister of Economic Development Maxim Reshetnikov said that at some point the mineral extraction tax (MET) on oil in Russia will have to be reset to maintain high production volumes. It is important for the Ministry that the parameters of tax changes leave the opportunity to invest in capital-intensive industries operating on a long cycle, he stressed. According to Reshetnikov, it is customary to look at such industries as "super-profitable", but now a new period of the super cycle is beginning, suggesting a decrease in prices.
Earlier, the president was asked to adopt economically sound rules for taxation of the industry instead of plans to link prices to the cost of oil supplies to Europe, where it is not actually shipped due to Western sanctions.
Currently, the highest value from the North Sea Dated is used to calculate the mineral extraction tax and the additional income tax (NDT, replaces the export duty and is levied on the proceeds from the sale of oil, minus the costs of its extraction and transportation) (the quote that the Argus pricing agency calculates based on the prices of five North Sea oil grades, including Brent) minus the differential of $ 20 per barrel or the price of Urals in Russian ports plus two dollars per barrel of transportation costs to European ports. The latter value is often higher, and it is mainly used for taxation of the industry.
Starting from October 1, the government planned to establish a procedure for calculating the cost of transporting oil by sea to European ports instead of a fixed value of two dollars per barrel and increase the cost of Urals by this amount to calculate taxes. The methodology was proposed by the Federal Antimonopoly Service (FAS) despite the fact that Russian companies practically do not supply raw materials to Europe, instead trading with India and China. If the transportation method was adopted, the cost of Urals for taxation could increase by about a dollar per barrel, which would additionally bring about 15 billion rubles per month to the budget.
Oil companies offered to set an oil price indicator for taxes, which would be closer to real conditions and supply directions, but the Ministry of Finance refused, citing the threat of a decrease in budget revenues.
Speaking at the SPIEF, Russian Minister of Economic Development Maxim Reshetnikov said that at some point the mineral extraction tax (MET) on oil in Russia will have to be reset to maintain high production volumes. It is important for the Ministry that the parameters of tax changes leave the opportunity to invest in capital-intensive industries operating on a long cycle, he stressed. According to Reshetnikov, it is customary to look at such industries as "super-profitable", but now a new period of the super cycle is beginning, suggesting a decrease in prices.
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