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Bill on additional income tax in oil sector ready to be considered by Russian government

The additional income tax will work in the pilot mode from 2018

KRASNOYARSK, April 21. /TASS/. A bill to introduce the additional income tax in the oil and gas industry is ready to be considered by the Russian government, Russian Deputy Prime Minister Arkady Dvorkovich said Friday on the sidelines of the Krasnoyarsk Economic Forum.

"The decision will be made by the parliament. So far, we decided that the bill is ready for consideration at a governmental meeting. I think it is realistic to consider it in the government by the end of May and submit it to the State Duma," Dvorkovich said.

It is assumed that the additional income tax will work in the pilot mode from 2018.

Unlike the mineral extraction tax, the additional income tax will be levied not from volume of produced oil, but from the revenues of the sale of raw materials, minus the marginal costs of extraction and transportation.

The project provides a voluntary transition to additional income tax for two groups of pilot projects. The first group consists of new deposits (greenfields) in new regions, the second group - mature fields (brownfields) in Western Siberia with total annual oil production for all fields of no more than 15 million tonnes.

Gazprom Neft, Lukoil, Surgutneftegaz and Russneft have applied for participation in the pilot project for the transfer of deposits to additional income tax. The total production of these deposits is about 7 million tonnes, all of them are located in Western Siberia.

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