Indus Grp Head:Russia Won't Hike Extraction Tax On Gas-Report

Indus Grp Head:Russia Wont Hike Extraction Tax On Gas-Report
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Παρ, 29 Φεβρουαρίου 2008 - 08:20
Russia won't raise the so-called mineral extraction tax for gas, Interfax quoted Valery Yazev, the head of the Russian Gas Association, as saying Friday.
Russia won't raise the so-called mineral extraction tax for gas, Interfax quoted Valery Yazev, the head of the Russian Gas Association, as saying Friday.

Yazev, who is also deputy parliament speaker, said that the government had decided at a closed meeting against raising the mineral extraction tax for gas, which has remained unchanged for three years, while producers are enjoying higher profits as gas prices rise.

In January, Deputy Finance Minister Sergei Shatalov said he wanted natural gas producers to pay more tax.

Analysts estimate that long-term gas mineral tax will be lowered considerably, as developments of new fields will require large-scale investment and wouldn't generate positive returns under the current tax regime.

Gas sector taxes are a fraction of those levied on Russia's oil sector.

Russian oil companies are currently lobbying for a reduction in their own tax burden, arguing excessive export duties discourage them from reinvesting in new production.

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