The Russian Federation wants to close damper expenses by increasing the mineral extraction tax on gas condensate – Kommersant

The Russian government intends to reimburse the costs of returning damper payments to oil refiners by reducing subsidies under the reverse excise tax on crude oil (ANS), as well as by increasing mineral extraction taxes (MET) on gas condensate. This was reported by Reuters, citing industry sources.

According to the agency, such a package of amendments to the Tax Code is planned to be submitted to the State Duma for consideration before November 10. According to the source, the bill “must be passed quickly,” before November 15, so that “everything is ready for the approval of the budget for 2024.”

Reuters notes that the following innovations will be introduced into the bill:

• increasing the Kvr coefficient from 0.5 to 1 from October 1;
• reduction of subsidies to oil refiners in the form of reverse excise tax on ANS;
• increasing the mineral extraction tax for gas condensate;
• extension until January 1, 2027 of the period of application of the Vspr value in the damper formula for diesel fuel (currently the period has been extended until January 1, 2024);
• extension of the deadlines in the agreement on the modernization of refineries in order to allow enterprises not to lose their registration certificate from January 1 next year.

Yesterday, November 1, Reuters reportedthat if the State Duma approves the bill on the return of damper payments to oil refineries, the Russian budget will spend about 0.4 trillion rubles in January 2024. In addition, the budget will lose another 0.35 trillion rubles. due to reduced taxes on oil production. According to Kommersant, among the measures being considered by the government to stabilize wholesale prices for petroleum products is an increase in the Kvr coefficient from 0.5 to 0.8–1. According to one of Kommersant’s interlocutors, the new damper is planned to be launched in November.

Read more about the government’s intentions to increase the damper in the Kommersant publication. “Fuel masters defense mechanisms”.

Polina Motyzlevskaya