The Russian government is asked to consider canceling export duties for oil and oil products and to replace them with tax for carbon use
The group of analysts elaborating the basis of the tax policy for the Government under Strategy 2020 has asked the Govt to cancel export duties for oil and oil products and to replace them with tax for carbon use. This suggestion was made in the report to the Premier Putin. A group of analysts headed by the President of Business Russia A. Galushka and by V. Drobyshevsky from The Gaidar Institute has attract attention to the fact that high export duties reduce the stimuli for production especially at minor deposits. If the duties are cancelled then oil companies will be able to raise production. To compensate for losses to the budget the analysts suggest not only a new tax but rise in mineral tax rate as well and growth in excises for oil products. Tax for carbon should be charged from the companies producing and selling fuel and elaborated at the basis of CO2 emission coefficients. Such a tax is charged in most of the EU states but it’s charged to fuel consumers, for example enterprises and car owners.
Translated by Nadezhda Poltoratskaya
