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Draft Law Excess Profits Tax In Russia Moves To A Vote
The Russian government approved a bill on introducing a tax on excess profits (EPT), Russian Energy Minister Alexander Novak told news agency TASS said on the sidelines of the Eastern Economic Forum.
"There was a meeting with Russian Deputy Prime Minister Arkady Dvorkovich, at which the decision was made," the head of the Energy Ministry said. In the near future, according to him, the document will be submitted for consideration by the State Duma.
Earlier, Deputy Minister of Energy Alexei Texler said that the department is counting on the adoption of the law on EPT for the oil industry by December 1. Thus, the reform was conducted on the initiative of The Ministry of Energy.
The tax on excess profits, unlike the mineral extraction tax, will be levied not on the amount of oil produced, but on the income from the sale of the raw materials, minus the marginal costs of extraction and transportation.
The bill introduced into the government assumes that there will be a voluntary transition to the EPT by developers of new fields and oil producers with wells with an annual production of not more than 15 million tons.
Applications to participate in the pilot project for the new system were filed by Gazprom Neft, Lukoil, Surgutneftegaz and Russneft. All of them are located in Western Siberia and their combined production is about 7 million tons.
Translated by Alinga Consulting Group.
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