Rosneft paid 28.6% less in excises in H1 2019 due to reverse excise tax introduction
MOSCOW. Aug 21 (Interfax) - Rosneft paid 28.6% less in excises in H1 2019 due to the introduction of reverse excise tax, the oil company said in a report.
Excise tax in Q2 2019 was 48 billion rubles, including 33 billion rubles in excise tax related to processing outside Russia, compared with excise tax of 73 billion rubles in Q1 2019, Rosneft said.
In H1 2019, excise tax was 121 billion rubles, including 65 billion rubles of excise tax related to processing outside Russia, compared to 170 billion rubles in H1 2018. "The decrease is caused by the introduction of the 'reverse excise tax' mechanism starting from 2019 - a deduction of accrued excise tax with a multiplying factor for crude oil sent for refining - partially offset by an increase in the excise taxes expense due to the increase in excise tax rates in 2019," Rosneft said.
In Q1 2019, the company recognized impairment of downstream assets in amount 80 billion rubles, as the consequence of impact of the tax maneuver.