18 July, 2018 – State Duma passed a package of governmental draft bills on tax manoeuvre

On 18 July the State Duma passed a package of governmental draft bills on the so-called “tax manoeuvre” in the oil sector, in a crucial second reading.

This tax reform envisages a gradual abolition of the export duties on crude oil and petroleum products within the period from 1 January 2019 to 1 January 2025. The rate of export duties on crude oil and petroleum products will be gradually reduced from 30% to 0%, within this period. The rate of natural exploration tax will in parallel increase, in the same proportion, over the next six years.

The tax reform is intended to generate additional budget revenues estimated to reach 80 billion roubles in 2019 and then increase at the rate of 75-79 billion roubles a year peaking at 470 billion roubles in 2024. Additional budget revenues from the reform are projected to total 1.6 trillion roubles, for the whole six-year period. Belarus is concerned that the tax reform in Russia will increase Russia’s domestic prices for crude oil by up to 50%, which will have a negative impact on Belarus.

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