Russia's Finance Ministry believes adjusting revenue added tax parameters in oil industry for all groups must be discussed, excluding third group

MOSCOW. Sept 28 (Interfax) - The economics to develop subsoil plots for nearly all subsoil plots that are developed using the revenue added tax are more favorable than the economics to produce oil at subsoil plots under the general taxation system, according to the Main Directions of Budget, Tax and Customs Tariff Policy for 2024 and the 2025 and 2026 planning period, which the Finance Ministry has published.

Consequently, this creates incentives to replace production to which the tax incentives do not apply with production to which the tax incentives do apply. Therefore, discussions are required with the interested executive authorities and the industry sector on adjusting the revenue added tax parameters, the Finance Ministry believes.

The only exception is 44 deposits included in the third revenue added tax group, based on the "location" indicator. The Finance Ministry recognizes taxation of this group of deposits as effective.