Tax on Extra Revenue to Introduce in Oil Industry
Monitoring of Russia's Economic Outlook. Moscow. IEP. 2017, No, 17. pp. 18-20
3 Pages Posted: 23 Oct 2017
Date Written: October 23, 2017
The development of the Russian oil industry requires new greenfield projects involving high development costs. In this context, the idea of introducing a tax on extra revenue (TER) for the oil industry has been debated extensively. The tax is supposed to ensure the minerals resource rent is extracted and the investment environment is suitable for development projects involving higher than- normal operating costs. However, TER represents a more sophisticated form of taxation that requires proper tax administration.
Keywords: Russian Economy, Oil & Gas Industry, Windfall Tax
JEL Classification: L71, L72, O47, Q32
Suggested Citation: Suggested Citation