July 5, 2018 / 10:20 AM / a year ago

Russian lawmakers approve profit-based taxation for oil production

MOSCOW, July 5 (Reuters) - The lower house of Russian parliament on Thursday approved in the third and final reading the new, profit-based, taxation for a limited number of oilfields, as part of efforts to boost domestic oil production, the Energy Ministry said.

The new taxation will likely boost oil output by 900,000 tonnes per year (18,000 barrels per day) and is initially applicable to a limited number of oilfields.

Taxes on the industry are currently based on production - via a mineral extraction tax - and exports. Companies have long lobbied for profit-based taxation, saying it will spur production and better reflect exploration costs and risks.

The first reading was approved in April.

The changes to the Tax Code should yet be approved by the upper house of parliament and President Vladimir Putin. (Reporting by Vladimir Soldatkin Editing by Alison Williams)

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