Russia:Tax rate has been chosen for oil companies

The Ministry of Energy wants 60% of their operational profit.

The Ministry of Energy has submitted to the Government its suggestions on the tax rate on the financial results in the oil sector which might replace the mineral extraction tax. According to Kommersant, the Ministry of Energy suggests setting a 60% fixed tax for the operating profit from oil sales. But the Ministry of Finance still treats sceptically the idea of this tax.

Kommersant has learnt about the main suggestions of the Ministry of Energy in the framework of turning to the added tax revenue submitted to the Vice Prime Minister, A. Dvorkovich last week. The Prime Minister, D. Medvedev, ordered the Ministry of Finance and Ministry of Energy by this autumn to work out the improvements to the Tax Code necessary for the introduction of the added tax revenue and approve a list of pilot deposits where this type of taxation will be applied. Now the Ministry is trying to approve the approaches to the application of the added tax revenue with the Ministry of Finance.