Russia’s foray into proft-based taxation for oil companies has accelerated over the past year, turning from a tentative experiment into a major overhaul of the way a signifcant portion of the earnings from Russian crude production are taxed. It was not ofcially supposed to happen like this. The fnance ministry introduced a pilot proft-based taxation scheme in 2019 in response to clamour from oil companies for a fairer and more progressive system. The pilot scheme was a cautious attempt to judge whether frms could be taxed on earnings from crude production rather than on production itself — as under the existing mineral extraction tax (MET) — without seriously undermining the crucial fow of oil revenues to the federal budget.
展开▼
