Russia Approves Tax Cut In Order To Boost Oil Production
It has been announced this week that the Russian Duma has approved a tax cut which is expected to lead to higher oil production. The move, which will reduce the tax on mineral extraction for oil, is set to
increase the annual earnings of oil firms by up to RUB5bn annually, according to a Reuters report. Forbes quoted Russian Energy Minister Sergei Shmatko as announcing that: "We anticipate that extraction volumes will be maintained and even increase
thanks to the measures. We expect the money to be spent on the development of
new deposits." In addition to the proposal to cut taxes, it has also emerged that new tax breaks are planned for companies developing new fields
in remote regions, lacking in the necessary infrastructure. Under the proposal, companies in such regions would be permitted to pay reduced taxes for
a 15 year period, or until a designated amount of crude oil has been obtained from the oil field in question. .
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.