On February 12, the Russian government submitted to the State Duma a bill clarifying the average price of Russian Urals oil when calculating the tax on mining and additional income, follows from Database lower house of parliament.
The government proposed to limit the discount on Urals for taxation from April. It is noted that if in April the discount for Urals oil exceeds $34 from the average price of Brent, then the authorities calculate the MET and AIT based on the cost of Urals with a discount of $34 from Brent.
Accordingly, in May the price of Urals is taken into account as the cost of Brent minus $31, in June a discount of $28 is applied, and from July – $25.
Ministry of Finance of Russia in Telegram channel explained that the draft law contains changes in terms of the procedure for determining the quotations of Russian oil used to calculate taxes – MET, AIT and reverse excise duty on oil.
“Such a transitional period for applying discounts to the Brent price will allow oil companies to adapt to the application of a new tax calculation procedure based on Urals quotes,” the ministry said.
On February 1, it was reported that the average cost of a barrel of Urals oil in January fell 1.7 times. In the first month of 2023, oil of this brand cost an average of $49.48 per barrel, while in January 2022 its average price was $85.64 per barrel.
