The heads of the largest Russian oil companies (Rosneft, LUKOIL, Gazprom Neft, Tatneft and Zarubezhneft) complained to Russian President Vladimir Putin about the Ministry of Finance’s attempts to change the parameters of the additional income tax (APT), Kommersant reports.
Thus, Vladimir Putin put a resolution on the letter to the profile Deputy Prime Minister Yuri Borisov “to consider and submit proposals.”
Earlier, the Ministry of Finance prepared a bill to compensate for about 200 billion rubles, which, according to the ministry, the budget did not receive in 2019 from the deposits that were transferred to the income tax.
Oilmen consider the AIT to be effective and state that additional investments in fields that have switched to this regime amounted to 110 billion rubles. Additional budget revenues for the five years of the company’s personal income tax are estimated at 180 billion rubles. The authors of the letter argue that if the proposals of the Ministry of Finance to change the AIT are adopted, in ten years the production of projects with AIT will decrease by 340 million tons, investments – by 2.3 trillion rubles, and the budget will lose 2.5 trillion rubles. They reproach the Ministry of Finance with the fact that it again “changes the rules of taxation in the oil industry, violating the principle of financial stability.”
Earlier it was reported that it was previously noted that at the beginning of 2018 Rosneft applied to the President of the Russian Federation with a request for tax incentives in the amount of 145 billion rubles. And in August 2018, Rosneft turned to Vladimir Putin with a request to provide tax incentives for the development of fields in Western and Eastern Siberia. The implementation of such a measure in the period from 2019 to 2024, according to I. Sechin, may allow to increase the drilling of new wells in the region by 5 thousand in relation to the current plans of Rosneft. This, as the head of the company stressed in his message to Vladimir Putin, will lead to an increase in oil production in Russia by 2-7%.