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Finance Ministry considers wider use of additional income tax only for viscous oil

Additional income from hydrocarbon production tax is a relatively new tax that is applied to several categories of deposits depending on their depletion and geographical location

MOSCOW, April 17. /TASS/. Russian oil companies are asking the authorities for a wider use of the additional income from hydrocarbon production, but the Finance Ministry is considering such an option only for deposits of super viscous oil, Deputy Finance Minister Alexey Sazanov told reporters.

"Such requests come in regularly, but at the moment we are only discussing it for viscous oil," he said.

Sazanov said earlier that the decision on a wider application of additional income from hydrocarbon production will be made after summarizing the results of the first quarter of 2023.

As Deputy Prime Minister Alexander Novak said earlier, in the future, the additional income from hydrocarbon production could become the main tax regime for oil production, and the state would hardly need to interfere in the tax system of the oil industry.

Additional income from hydrocarbon production tax is a relatively new tax that is applied to several categories of deposits depending on their depletion and geographical location. It replaces the export duty and mineral extraction tax (in part) and is levied on the proceeds from the sale of oil, minus the costs of its extraction and transportation.

The additional income from hydrocarbon production regime is applied to some new fields in Eastern Siberia, operating fields in Western Siberia with a depletion of 10% to 80% (with a production quota of no more than 15 million tons), new fields in Western Siberia with a depletion of less than 5% with total reserves not more than 50 million tons per year, as well as Arctic projects.

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