Russian Ministry of Energy and Ministry of Finance agree tax rebate on excise duties for naphtha suppliers

The Russian Ministry of Energy and the Ministry of Finance have agreed a tax rebate on excise duties for companies supplying naphtha for Russian petrochemical enterprises, within the upcoming tax manoeuvre. This was announced by the Energy Minister, Alexander Novak at the meeting on social and economic development of the Samara region.

"There is a solution: we with the Ministry of Finance offer to provide a refund of the negative excise on naphtha, which is used for petrochemistry. That is a company that will supply naphtha to an enterprise, will receive a reduction in tax revenues from other taxes and thus the naphtha price will remain. So we have the following situation: with the decrease of the export duties for naphtha, the price on the domestic market is expected to grow by netback, but due to this operation (negative transfer) we assume – and this has been agreed with the Ministry of Finance - the price for a processor won’t be increased,"- the Interfax cites the Minister.