01:21 GMT +311 December 2016
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    ECONOMIC DEVELOPMENT AND TRADE MINISTRY, FINANCE MINISTRY SET TO CHARGE HIGHER TAXES ON RAW-MATERIALS SECTOR

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    MOSCOW, JANUARY 21 (RIA Novosti) - The Russian Economic Development and Trade Ministry, as well as the national Ministry of Finance, would be expected to submit their estimates concerning higher taxes for the raw-materials sector to the Government by February 12. This was disclosed to reporters here today by Deputy Economic Development and Trade Minister Arkady Dvorkovich.

    In his words, different aspects of increasing the sectoral tax burden are now being discussed. Some experts suggest raising export duties; still other would like to charge higher severance tax, advocating more substantial export duties all the same. Differentiated severance tax seems inevitable, in case we decide to raise it, Dvorkovich stressed.

    According to Dvorkovich, this rather involved issue has its positive and negative aspects alike.

    Talking about the possible deduction of the oil sector's sky-high profits, Dvorkovich emphasized the fact that this will depend on who pays for the infrastructure. Up to $5 billion might be deducted, if the state pays for the oil-transport network; these monies will then be used to build oil pipelines, Dvorkovich went on to say.

    Meanwhile any deductions would be out of the question, if Transneft and oil companies pay for this oil-pipeline network, the Deputy Minister believes.

    Technically speaking, the tax burden can't increase, if a barrel of oil costs less than $25, Dvorkovich noted. Greater oil prices would raise this tax burden somewhat; consequently, it would become possible to deduct sky-high profits to the tune of $1-2 billion, Dvorkovich said in conclusion.

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