Dispute of officials: what taxation in the oil industry will be

By the beginning of March (a meeting at the Deputy Prime Minister Arkady Dvorkovich’s office is scheduled) the Ministry of Finance and Ministry of Energy must submit a bill on tax experiment in the oil industry. But for now negotiations have come to a deadlock. There are two versions of the reforms – proposed by the Ministry of Energy and the Ministry of Finance, and each stands on its own version, two federal officials involved in the negotiations talk.

Version of the Ministry of Finance: to introduce an excess-profit tax (cash flow is its subject), extending it to new fields only, which already have MET and duty privileges. At the same time, all these benefits will be canceled. Version of the Ministry of Energy: to introduce a tax on financial result (income is its subject) for projects with benefits and for depleted fields without benefits. List of pilot projects is formed by the Ministry of Energy, which has and already included in it a few dozen projects. The selection criteria were not made public.

The tax rate, proposed by the Ministry of Energy, is 60%, a bill, prepared by the Khanty-Mansiysk autonomous district, was taken as a basis. The Finance Ministry’s rate is floating and varies depending on the ratio of accumulated income and expenses.