Khanty Mansi Autonomous Area to submit a draft law on new tax for 22 pilot projects of fuel and energy sector instead of mineral extraction tax

The Khanty Mansi Autonomous Area plans to suggest the introduction of a tax for financial results instead of the mineral extraction tax for 22 pilot oil and gas projects in the region, 2 sources familiar with the situation said. The draft law worked out by the Parliament of the Khanty Mansi Autonomous Area will be submitted to the State Duma soon.

According to the sources, the introduction of such a scheme aims at the increase of the budget income from the highly profitable oil and gas deposits and stimulation of the companies into the development of difficult to extract reserves.

The idea of the regional Government presupposes that the oil and gas companies will be able to voluntarily turn to the new system of taxation for 5 years – pay income tax from the sales of the oil extracted oil with the release to pay the mineral extraction tax, a source familiar with the situation said.

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