The Ministry of Finance thought about a new adjustment of the taxation of oil companies

 

Ministry of Finance discusses with the government the adjustment of taxation of oil companies

According to Siluanov, the idea of ​​adjusting the taxation of oil companies is being discussed in the government and with oil companies.

The Ministry of Finance is discussing with the government the idea of ​​a new tax adjustment for oil companies, head of the department Anton Siluanov said in an interview with Naila Askarzade.

“We have several other considerations for adjusting the mechanism for taxing oil workers, we are discussing them in the government and, accordingly, with oil companies,” the minister said ( quoted by TASS ).

He recalled that earlier a mechanism was applied to make the level of taxation of oil companies involved in export more objective.

In February, President Vladimir Putin approved amendments to the Tax Code, which provide for a change in the procedure for determining the price of oil to tax oil companies. Changes to the legislation affect the mineral extraction tax and the tax on additional income from hydrocarbon raw materials and the excise tax on petroleum raw materials.

The previous procedure provided for the calculation of taxes based on the price of Urals in European ports, but after the introduction of Western sanctions, Russian oil supplies were redirected to other markets. With the imposition of a partial EU embargo on oil from Russia and the adoption of a price ceiling by the West, the discount between quotations used for taxes and the value of Brent has risen sharply, which has led to a decrease in oil and gas revenues.

The new formula for calculating the price of oil for tax purposes will bring the budget to more than 600 billion rubles, the Ministry of Finance said.

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In mid-February, the government submitted a bill to the State Duma with amendments that would change the procedure for determining the price of oil to tax oil companies.

The formula proposed by the bill for calculating the taxes of oil companies implies that the quotations of Russian Urals brand oil should not be lower than the cost of Brent minus $ 25 per barrel from July 2023.

This is because, according to the current procedure, taxes are calculated based on the price of Urals in European ports, and against the backdrop of Western sanctions, Russian oil supplies were redirected to other markets. After the G7 countries imposed a price ceiling on Russian oil, the discount between the quotes used for tax purposes and the cost of Brent oil increased sharply, which led to a decrease in oil and gas budget revenues.