Introduction of profit added tax postponed for indefinite date

The point of the introduction of a profit added tax is not on the agenda as ‘magister’, the Deputy Minister of Finances S. Shatalov says.

The ides of profit added tax is as follows: tax burden is minimal in the beginning of the deposit development and it grows with the growth in oil production. Payments are higher in comparison to the current taxation when production reaches the maximum. The Government can get to the project on profit added tax in autumn, the Deputy Minister of Energy K. Molodtsov says.

The point of profit added tax or financial results tax, as the officials called that, was postponed after the suggestion of the President V. Putin to discuss the idea more. He attracted attention to the difficulties with administration of the tax. In his opinion, the oil sector specialists are so qualified that the financial result will be always minimal and any attempted growth of the tax base will be vain.