Vladimir Putin Signs a Law on Low Oil Export Duties
Russian President Vladimir Putin signed a law on reducing export duties on oil within the framework of tax maneuver. The corresponding document is published on the portal of legal information.
The tax maneuver provides that the export duty on oil will decrease from the current 30% to 0% within six years, starting from 2019, while increasing the severance tax for oil for three years. For this purpose, amendments are made to the federal law “On Customs Tariff” and to the Tax Code. The State Duma adopted, and the Federation Council has already approved both documents.
In addition to lowering duties, it sets forth the right of the government in the event of force majeure, namely, a sharp increase in fuel prices on the domestic market, and introduce an additional duty on the export of petroleum products.
The government is granted the right to raise export duties on light oil products, commodity and straight-run gasoline up to 60% of the oil duty in case of an increase or decrease in the price of oil on world markets by more than 15%.
Earlier, the State Duma passed a law that allows the government to increase export duties on such petroleum products to 90% of the duty on oil before the end of 2018, RIA Novosti reported.
The export duty on light oil products, commodity gasoline is 30% of the duty rate for oil, for straight-run gasoline – 55%.
