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Russian cabinet not considering increase in tax burden on oil sector

The Russian authorities decided earlier to amend the Tax Code and resume, effective October 1, the fuel damper mechanism

MOSCOW, October 11. /TASS/. The Russian government is not considering an increase in the tax burden on the oil sector for reimbursement of additional budget expenditures on adjustment of the fuel damper mechanism so far, Deputy Prime Minister Alexander Novak said.

"This all will be included in fiscal adjustment, without increasing the tax burden," he told reporters on the sidelines of the Russian Energy Week when asked a respective question.

"The budget will be passed in the second reading, and all those issues will be solved then," Novak added.

The Russian authorities decided earlier to amend the Tax Code and resume, effective October 1, the fuel damper mechanism. Changing the damper coefficient from 0.5 to 1 is expected to allow for increasing the amount of compensation in sales of motor fuel in the domestic market to refineries.

Russian Energy Week is an international event, which provides a platform to discuss the main economic challenges in energy, as well as current issues concerning the development of the fuel and energy sector. The event has been held since 2017. TASS acts as an information partner.

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Taxation Alexander Novak

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