Russian State Duma approves bill on modifying excise tax deduction for naphtha processing

MOSCOW. Oct 22 (Interfax) - The Russian State Duma has approved an amendment to the Tax Code at its third reading which will reduce the size of the excise tax deduction for straight-run gasoline (naphtha) in 2025-2027 compared to previously planned levels.

The bill, No. 727330-8, was submitted to parliament by the government on September 30.

Under current legislation, the excise tax deduction for straight-run gasoline sent for processing is set with a coefficient of 1.7. It is proposed that this coefficient be replaced with a fixed additional monetary amount of 12,575 rubles.

Consequently, the excise tax deduction for naphtha sent for processing in 2025 will stand at 31,873 rubles per tonne. If the coefficient of 1.7 was retained, the amount would have been 32,807 rubles per tonne. In 2026, it will be 32,645 rubles per tonne compared to the previously planned 34,119 rubles per tonne, and in 2027 it will be 33,448 rubles per tonne compared to the previously planned 35,484 rubles per tonne.

The deduction will be provided while taking into account the increase in excise taxes. According to proposed amendments to the Tax Code, the excise tax on straight-run gasoline is expected to be set at 19,298 rubles per tonne in 2025, up 7.4% compared to 17,965 rubles per tonne in 2024, while it will be 20,070 rubles per tonne in 2026, up 4%, and 20,873 rubles per tonne in 2027, again up 4%.

In other cases of naphtha receipt or use, the excise tax will be deducted with a coefficient of 1.