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MOSCOW, November 6. /TASS/. The budget and tax committee of the Russian State Duma lower parliament house on Wednesday supported the idea of tax privileges for gas to be pumped to China via the Sila Sibiri (Power of Siberia) gas pipelines.
The committee supported the government’s amendments to the law on indexing excise duties and a tax maneuver that provide for tax privileges on the mineral extraction tax and corporate property tax for companies involved in the implementation of the project for China-bound gas supplies via Sila Sibiri.
One of the amendments provides for slashing to zero the mineral extraction tax within the first 15 years of the developments of gas fields located, fully or partially, in Russia’s Siberian Irkutsk region and the republic of Yakutia. The tax will be flattened out in a period from 16th to 24th year of the fields’ development. This way, the gas extraction tax at the Chayadinskoe and Kovykta gas fields will be slashed to zero.
Another amendment offers a 20-year privilege on the property tax applicable to gas mains and facilities of such pipelines, gas production facilities and helium production and storage facilities. Such facilities that are now being built under the Sila Sibiri projects will enjoy zero property tax in a period from 2015 to 2035. “No such privileges will be applicable to other facilities,” said Russian Deputy Finance Minister Sergei Shatalov.