Ministries of Energy and Finance approved the draft law on a tax manoeuvre in the oil sector

The Ministries of Energy and Finance approved a draft law on the tax manoeuvre, the Ministry of Energy reports.

It is reported that the representatives of the Ministry of Energy participated in the meeting of the Government Committee for legislative drafting activities. One of the key issues of the meeting was the discussion of the tax manoeuvre in the oil sector.

“The Ministry of Energy and Ministry of Finance in general have managed to approve the draft law, and its main parameters stayed in the framework of the agreements reached by August 1st”, is reported. In the agreed variant of the draft law the suggestions of the Ministry of Energy upon keeping the zero mineral extraction tax rate for oil production from the Bazhenov, Alabak, Khadum and Domanik productive layers were taken into account. The margin of the deposits’ depletion, which is a criterion of the preference application, rose from 3% to 13% (the preference is valid for 180 tax periods). The Ministry managed to approve the reduction of the basic mineral extraction tax basic rate in 2015 by 10 roubles compared to the suggestion of the Ministry of Finance as of August 13th. In conformity with the previously introduced by the Ministry of Energy suggestions, it was agreed not to raise excise duties for oil products in 2017.