Unreasonable to further increase already high taxes on oil industry, there is risk of overdoing it - minister

MOSCOW. May 26 (Interfax) - The tax burden on the oil industry is one of the highest, and increasing it further is unreasonable as it could undermine companies' stability, Finance Minister Anton Siluanov said.

"When we adopted the tax changes last year, we agreed not to fundamentally change the approaches to taxation until 2030, and we propose to adhere to this principle," Siluanov said in response to a question from MPs during a meeting of the State Duma Budget Committee on whether it is worth further increasing the tax burden on oil companies.

At the same time, the level of fiscal burden on oil companies is probably the highest. Depending on market conditions, it amounts to around 70% to 80% of pre-tax profit, he said.

"In our view, it is not advisable now to change and increase taxation and the level of the tax burden [on the oil sector]. In no case should we overdo it to the point where the financial results of these companies turn negative. We don't need that, and nobody needs that," Siluanov said. The taxation parameters for oil and gas and oil companies were worked out with the industry, he said.