The Ministry of Finance and the Ministry of energy is close to the consensus on the taxation of oil companies

The Ministry of Finance and the Ministry of energy is close to the consensus on the taxation of oil companies


The Deputy Minister of Finance Sergey Shatalov said that he expects that next year will be introduced a model of taxation that will provide for more flexible tax system for new fields.

DUBAI, 29 Nov. The Ministry of Finance and the Ministry of energy close to the consensus translation of the oil industry on a new tax system, said Deputy Minister of Finance Sergey Shatalov, he expects that in 2016 the industry will be translated into a model that will satisfy everyone.

“Within the government, we seem close to consensus about the solution of how to modify the system of oil industry taxation regarding the tax financial result or the tax on additional income,” he said at a meeting of the Russian economic and financial forum in the United Arab Emirates.

“I hope very much that next year, we will introduce a model that will satisfy both the oil companies and the budget, which will provide for more flexible tax system for new fields and to some extent will affect the problem with the fields in Western Siberia, which are being developed for a long time, we projected and we see the drop in production there and believe it is possible too to change the tax system to remove these problems,” he said.

The Ministry of energy had proposed earlier in 2016 in depleted fields where the high cost of production makes development inefficient, to replace the mineral extraction tax the tax on financial result. The Ministry has proposed to test a new tax for three to five years at several pilot fields, and after that to decide on the expedience of extending the sales tax to the entire industry.

Opponent of the introduction of PR for pilot projects were made by the Ministry of Finance, has developed its own draft law on the introduction of the added tax income (JPM). The Ministry of Finance opposed “testing” tax innovations on individual fields, insisting on the dissemination of the new system for the entire oil industry immediately.

Minister of energy Alexander Novak on November 27, told reporters that a bill on pilot testing NFR fields will not have time to adopt by 1 January 2016. Now, according to Novak, the energy Ministry and the Finance Ministry are discussing the parameters of the new tax system proposed by the Ministry of Finance system-added tax income (JPM) is “interesting”.