The Russian Finance Ministry has released a draft document outlining a series of tax break proposals for oil and gas industries as part of its fiscal policy strategy for 2009-2011.
The draft document, to be reviewed by the Russian government on April 3, includes proposals to cut the mineral extraction tax, change excise duties on high quality oil products and introduce tax breaks for exploration on the continental shelf, The Guardian reports.
Alexei Kudrin, the Russian Finance Minister, whose ministry is in charge of tax policy, signalled last week he would propose a cut to the mineral extraction tax by lifting the non-taxable threshold to $US15 (₤7.5) a barrel from the current $US9.
The increase will result in a much sought after break in the heavily taxed $US4.20bn-a-year industry, which accounts for about 0.25% of Russia's projected 2009 gross domestic product.
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