Russian govt launches major tax reform

The Russian government is embarking on a major tax reform which will cost the
country’s budget up to 200bn roubles (?4.3bn) in new tax breaks.

Arkady Dvorkovich, the top economic adviser to Russian President Dmitry
Medvedev and an advocate of major fiscal reform, told newsagency
the new tax break proposals will be drafted by August 1 may take effect from

The tax overhaul follows a proposal passed by the Russian government to
reduce the mineral extraction tax on oil, a decision which is expected to
bolster earnings for oil companies by more than 100bn roubles a year.

Oil companies say the tax burden on the industry at present, amounting to
62%, is too high and discourages investment in exploration, leading to a major
slowdown in Russian oil output growth after a decade of considerable growth

Further reading:

Russia unveils tax breaks for O&G industries

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