The Federation Council supported the law on completion of the tax maneuver in the oil industry

© AP Photo / Hasan JamaliНефтяной the machine-rocking. Archival photoThe Federation Council supported the law on completion of the tax maneuver in the oil industry© AP Photo / Hasan Jamali

The budget Committee of the Federation Council supported two of the law on the completion of the tax maneuver in the oil industry, documents will be reviewed at the plenary session of the house on July 28.

At the final stage of the tax maneuver, the export duty on oil will be reduced from the current 30% to 0% over six years, starting in 2019, while increasing the mineral extraction tax on oil for three years (through 2021).

To prevent the growth of domestic prices for petroleum products or the appearance of scarcity, the maneuver involves two mechanisms: reverse excise duty on oil supplied for processing, and the complementary damping excise, taking into account the profitability of export of oil products.

As a General rule, reverse the excise duty will be able to obtain Russian refiners that produce gasoline and diesel fuel is not below the fifth grade and supply to the domestic market at least 10% of the produced volume.

In addition, on the back of excise duty will be able to count the refinery, which is under sanctions of the USA and the EU, even if they do not produce fuel for the domestic market.

Additional damping of the excise tax to reverse excise on crude oil for refining, the Federal government can impose depending on the price conjuncture on world markets to compensate for shortfalls from oil exports of fuel and thus to constrain domestic prices.

Damping the excise tax can be both positive and negative. The maneuver involves the right of the government in the event of force majeure is a sharp rise in fuel prices in the domestic market, to introduce additional duties on export of oil products.

The government is right to raise 2019 export duties on light petroleum products, commodity and directly distilled gasoline up to 60% from the duty on oil in the event of an increase or decrease in the price of oil on world markets more than 15%.

Earlier, the Parliament adopted a law that allows the government until the end of 2018 to raise export duties on such products by up to 90% from the duty on oil. Now the export duty on light oil products, commercial gasoline is 30% of the rate of duty on oil, straight-run gasoline — 55%.

The Federation Council supported the law on completion of the tax maneuver in the oil industry© RIA Novosti, Infografiken European countries on gasoline prices – 2018

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