Maxim Reshetnikov Urged to Be Prepared for Zeroing Out the Mineral Extraction Tax
The mineral extraction tax (MET) in Russia, including oil, will have to be zeroed out at some point in order to maintain production volumes; a new period of the super cycle is beginning – falling prices, said Russian Minister of Economic Development Maxim Reshetnikov.
“It is very important for us as the Ministry of Economic Development that all these parameters (of tax changes – ed.) leave room for investment, including expanded investment in industries that operate on a long cycle, which are very capital-intensive and about which we have become accustomed to talking about their super profits in recent years. But they are most likely entering a different part of the super cycle – after all, during a period of falling prices, and therefore not everything will be simple there. And we must understand that at some point we must be prepared to zero out the MET in order not to reduce production volumes,” Reshetnikov said at a tax session within the SPIEF.
In this regard, he noted that the proposed amendments to the tax legislation contain a mechanism that varies the size of the mineral extraction tax rate depending on the objective situation on the markets.
“This, among other things, ensures the absence of initiatives on windfall tax in the future, on some export duties, and so on. We must understand that we are forming a predictable tax system, including for business,” the minister said.
The St. Petersburg International Economic Forum (SPIEF) is being held from June 5 to 8. RIA Novosti is the information partner of the forum.
