Oilmen to get the chance to save on taxes?

It will be real if the excess-profits tax replaces the current taxation system.

Fiscal law in oil sector can again change in Russia in the short term. The Russian Premier D.Medvedev instructed government officials to estimate the practicability of excess-profits tax introduction instead of the current taxation system, including MET and profit tax. According to experts it can make it possible to save up to 35% of the current tax burden in oil companies.

The idea of speeding up the tax reform in oil-and-gas sector in a part of switching from taxation of the revenue to the taxation of the financial results has been announced by the Head of Minenergo A.Novak. He said that oil companies want such kind of reforms. He has also added that an alteration of tax regulation system is registered in “Energy strategy of Russia before 2030”. Besides, such system of tax assessment exists in many developed oil-producing countries, inclusive of Canada and Norway. The Ministry of Energy planned to develop excess-profits tax introduction project before the end of 2013, test it during 2014 and implement in 2016.