Russian Budget Could Get $1.7 Bln in 2013 from Extra-MET

Russia’s state budget could receive 50 billion rubles ($1.7 billion) in 2013 from an additional increase in the mineral extraction tax (MET), the country’s key tax for energy firms on gas, Deputy Finance Minister Sergei Shatalov said on Friday.

The ministry suggests raising the MET on gas to a level at which 80 percent of the growth rate in domestic gas prices will be transferred to the budget through the tax. The measure could also give the country’s budget 150 billion rubles ($5.09 billion) in 2014.

“Under our estimates, we could get about 50 billion rubles in 2013 from the gas industry on the whole, not only from Gazprom [gas giant] and about 150 billion rubles in 2014,” Shatalov told reporters without mentioning possible tax rates.

He also said that Gazprom had received the ministry’s proposals concerning the indexation.

The ministry considers using such system until Russian gas companies reach yield parity and there will be no reasons to take additional incomes from the companies which raise gas prices. The indexation may be proposed for tax laws this year for the tax policy in 2013-2015.

Higher MET could bring up to one percent of the country’s gross domestic product by 2016. The measure is likely to be approved as internal gas prices will be growing to reach a world level of gas prices, export duty and transport expenses exclusive.


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