Russia to raise mineral extraction tax rate on Gazprom

Russia plans to increase the mineral extraction tax (MET) rate that is applied to gas company Gazprom by 36.7 percent in 2016, according to amendments to the Tax Code published on the government's website on Saturday. On Thursday the government approved the tax increase on Gazprom, but did not give the new rate that would apply. The government calculates that the increase will raise an additional 100 billion roubles ($1.62 billion) for next year's budget.
Russia is looking for ways to raise revenue to fill a hole in the federal budget caused by the slump in global oil prices. The government said the higher tax rate would be achieved by adjusting the conditional fuel unit used in the formula for calculating MET on natural gas fuel and gas condensate, and would apply only to companies with the right to export natural gas in a gaseous state - a reference to Gazprom.