Russia's State Duma Approves Bill to Keep Oil Export Duty Unchanged in 2016

Strategic Insights -

Russia's state-owned oil refineries may face a boost in revenue in 2016, thanks to a bill passed by the State Duma's budget and taxes committee, which aims to maintain the current oil export duty rate for the next year. The bill is estimated to generate an additional 193 billion rubles for the federal budget, according to the financial and economic reasoning for the legislation. Finance Minister Anton Siluanov has proposed maintaining the oil export duty rate to support oil refineries that have not modernized their facilities. The bill will now be considered by the State Duma in the first reading on November 13.

Key Takeaways:

  • The State Duma's budget and taxes committee has recommended passing a bill to keep the oil export duty rate unchanged in 2016, generating an estimated 193 billion rubles in additional federal budget revenue.
  • Finance Minister Anton Siluanov has proposed maintaining the oil export duty rate to support oil refineries that have not modernized their facilities since the 2015 rate will increase the margin on refining oil.
  • The bill does not propose lowering the oil export duty rate, contrary to previous plans, to maintain the margin on oil refineries.
  • The State Duma will consider the bill to amend Article 3-1 of Russia's law On the Customs Tariff on November 13.
  • The oil export duty rate will be set at the same level as in 2015 to support oil refineries that have not modernized their facilities.
  • The Russian government estimates the measure will increase revenue from the oil industry.
  • The Finance Ministry has proposed ways to collect additional tax revenue from the oil industry.

Statistics:

  • The bill is estimated to generate an additional 193 billion rubles for the federal budget.
  • The oil export duty rate is set to remain the same for 2016, compared to the previous year's rate.
  • November 13 is the date when the State Duma will consider the bill to amend Article 3-1 of Russia's law On the Customs Tariff.

Sources:

  • "Duma committee approves bill to keep oil export duty unchanged in 2016" by Interfax, Nov 9 (available at eng.interfax.com[1])
  • "Finance Minister Anton Siluanov proposes to keep oil export duty rate unchanged in 2016" by Interfax, Nov (not specified) (available at eng.interfax.com[1])