The Russian Ministry of Finance has developed the parameters of the tax on added income (TAI) in the oil industry. In contrast to the mineral extraction tax, which is paid on the amount of oil produced, TAI will depend on oil revenues.
The Ministry suggests introducing a tax with a fixed rate of 70%, but it will be discussed, Vedomosti reports. The tax base will be the estimated revenue minus the operating costs, export duties, estimated transport costs, taxes on mineral extraction (MET) and customs duties. The Finance Ministry proposes limiting the costs which can be taken into account – no more than $20 per barrel.
At the same time, MET and duties will remain, but will be reduced, the newspaper added.
