Oil export duty to stay 42% in 2016

The Committee of the State Duma for budget and taxes has recommended the lower chamber of the Parliament that it should approve in the first reading a draft law on saving the oil export duty at 42%.

According to the Government, it will allow to additionally direct 200 bln roubles to the federal budget in 2016.

The draft law aims for the realization of measure on the growth of budget income in 2016 in connection with a sharp reduction of forecast oil prices in 2016.

The document saves the order of calculation of the oil export duty at the oil price higher than $182.5/tons in 2016.

Saving the duty rate of 2015 will possibly allow to support oil refineries that haven’t managed to modernize, as it will increase the profit of oil processing.

Saving the duty rate will not lead to the price rise for oil products, as the rate is proportional the rate of the oil export duty.

The draft law is planned to be submitted to the State Duma on November 13th 2015.

In 2016 the Government plans to freeze the oil export duty, it caused disapproval of the regional Governments and oil companies.