Duma Committee approves higher mineral extraction tax on Gazprom condensate, indexation of tax on gas, but will discuss this further

MOSCOW. Nov 7 (Interfax) - The Russian State Duma's Committee on Taxes and Budget at a meeting on Tuesday approved in principle amendments to a bill proposed by the Finance Ministry to increase the mineral extraction tax on Gazprom condensate, as well as index the mineral extraction tax on gas to offset higher wholesale gas prices, but will discuss this issue further, taking into account the position of relevant companies and Energy Ministry.

"The procedure for calculating the price of gas for the domestic market is being adjusted to ensure revenues that have been budgeted; in addition, a levy from Gazprom in terms of condensate would being introduced to compensate for the [elevated] damper," Deputy Finance Minister Alexei Sazanov said during the meeting.

The head of the Duma Committee on Energy, Pavel Zavalny, said this amendment was discussed with Deputy Prime Minister Alexander Novak and independent producers aired their proposals.

Zavalny also said the additional tax burden on Gazprom amid a drop in gas exports could lead to losses.

The head of the Tax and Budget Committee, Andrei Makarov, proposed discussing this issue further at a committee meeting on Wednesday.