The Ministry of Energy excluded the expansion of the tax on additional income from oil workers until 2024

The Ministry of Energy is not considering expanding any perimeter of additional income tax (APT) for new categories of oil until 2024. This was stated in an interview with RIA Novosti by Russian Energy Minister Nikolai Shulginov on the sidelines of the St. Petersburg International Economic Forum (SPIEF).

“Proposals to expand the perimeter of the NDD are constantly being voiced: super-viscous oil, flooded. We, of course, react, but all these proposals can be considered no earlier than 2024 due to the peculiarities of the budgetary process, ”said Mr. Shulginov.

Speaking about super-viscous oil, the minister noted that this issue is being worked out. The department plans to develop parameters during 2022. “But I think that the introduction of changes will still be no earlier than 2024 – everything related to the expansion of the perimeter of the personal income tax,” explained the head of the Ministry of Energy. He also called the possibility of introducing NDD for extra-viscous oil at an earlier date as desirable.

In September 2020, the State Duma adopted a bill to increase the tax on mineral extraction for metallurgists and chemists, as well as to abolish benefits for oil workers. Now, as part of the presidential order, the government is considering the possibility of expanding the AIT to stimulate production at fields of high-viscosity and extra-viscous oil, from hard-to-recover reserves and high-water-cut wells.

Earlier, Deputy Finance Minister Alexei Sazanov said that the department is considering the application of a tax on additional income from the extraction of hydrocarbons before 2024.