Tax break for fields with high water cut might apply to those with output of 40 mln t
ST. PETERSBURG. June 1 (Interfax) - The mineral extraction tax (MET) break for old fields with a high water cut might be applied to fields with total production of 40 million tonnes of oil, Deputy Energy Minister Alexei Teksler told reporters.
"Forty million tonnes could fall under the tax break for fields with high water cut," he said.
Such a large amount of production eligible for a tax break could initially lead to lost budget revenues, but they would be offset in future, he said. "There will be lost revenues in the first years, but they will pay for themselves in three to four years," Teksler said.
He also said that the bill to introduce the new tax system with the tax on excess profit for pilot oil projects is ready.
"A few days ago we received the Finance Ministry's proposals for the tax on excess profit in almost the form that we wanted, they are consistent with agreements. The law is on its way. We will do everything so that it starts working in 2018," Teksler said.