Putin signed the law on increase in 2016 the mineral extraction tax for Gazprom

Putin signed the law on increase in 2016 the mineral extraction tax for Gazprom


The tax increase on gas production for the company will bring to the Russian budget next year 114,691 billion rubles of additional income.

MOSCOW, 29 Nov. The President of Russia Vladimir Putin signed the law on amendments to the Tax code of the Russian Federation about increase in 2016 of the tax on mineral extraction (met) for gas for “Gazprom”.

This measure in 2016 will provide the budget of the Russian Federation 114,691 billion rubles of additional income. The draft law “On amendments to article 342.4 of the second part of the Tax code of the Russian Federation” adopted by the state Duma on 20 November approved by the Federation Council on November 25. The President signed the law on November 28.

The act provides for adjustment of the indicator “unit of fuel” used to calculate tax rates on gas production and gas condensate, by a factor characterizing the yield of export unit of conditional fuel (GFP). The specified ratio in 2016 will be: Gazprom — 1, for all other taxpayers — 0,7317. The coefficient in the formula for calculating the indicator of unit of conditional fuel is changed from 0.15 to 0,2051.

The law is aimed at implementing measures to increase budget revenue in Russia in 2016 by removing the additional profit arising from devaluation positive effect in the reduction rate of the ruble exporters of natural gas.

The law also clarifies the procedure for applying the zero rate in respect of oil produced on the subsoil plots located fully or partially in the Caspian sea, developed by LUKOIL. The zero coefficient will be applied until 2022.

The act also proposes to amend the Tax code, extending the moratorium on the creation of new consolidated groups of taxpayers (CGT) until the end of 2017.