1 Jul 2010 14:08

Econ Min backs oil, gas tax hike proposals from 2011

NABEREZHNYE CHELNY. July 1 (Interfax) - The Russian Economic Development Ministry backs Finance Ministry proposals to raise the natural resource extraction tax (NRET) for oil and gas from 2011, but to a lesser extent, Economic Development Minister Elvira Nabiullina told reporters in Naberezhnye Chelny, Tatarstan.

"On the whole, an increase is needed. In our view an increase can be considered for the period that rates have not been adjusted, and not more," she said, adding that the gas NRET had not been adjusted since 2005. .

The extent of the NRET increase from 2011 still has to be discussed - various options include adjusting it for inflation or changes in gas prices, she said.

Nabiullina also said the tax that the Finance Ministry has proposed on additional revenue was the right approach, but there are many question marks over how that tax should be administered, and things still have to be discussed.