Finance Ministry considers cutting tax on high-sulphur oil
MOSCOW. April 5 (Interfax) - The Russian Finance Ministry is considering cutting the natural resource extraction tax (NRET) on oil with high sulphur content, Deputy Finance Minister Sergei Shatalov told the press.
"It could very well be that we decide to reduce the NRET on sulphurous oils. This has a normal basis - that oil is less expensive and the NRET rate on it is the same as for other oil," Shatalov said.
This measure would be taken to support oil companies that have taken losses associated with the unification of export duties on light and dark oil products at 66% of the rate on oil. In particular, these are companies such as Tatneft and Bashneft , and also TAIF's oil refinery. "They will have to weather four and a half years," Shatalov said.
The rate reduction will likely not have an expiration date and would apply to all companies that extract this kind of oil, he said.
As to compensation for Tatneft and Bashneft, this reduction "will partially remove the problem, it is one of the instruments," Shatalov said. There are no hard numbers for what level the NRET will be reduced to yet, he said.
