Russian Deputy Prime Minister confessed to “love” petrochemistry and promised special benefits

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www.vsyako.netPhoto: Alexey Ereshko / RIA Novosti

Deputy Prime Minister Yuri Borisov in an interview owned by Grigory Berezkin RBC confessed to “love” to the domestic petrochemical industry and promised to companies from this industry special incentives in the form of back excise duty like that for two years works in the sphere of oil refining.

“In the energy sector — in oil and gas production, oil refining, oil and gas processing — I had a rather superficial knowledge, I’m not going to hide it. I had to work a lot with people, I thank them very much that they spent the time in my self-education,” — said Borisov about his appointment as the curator of the energy industry in the government of Michael mishustina.

Before, in the government of Dmitry Medvedev, he was in charge of the defense, the defense industry, the defense procurement and military-technical cooperation. After receiving the new duties and powers Borisov “to some extent fell in love with the petrochemical industry”.

Among the nearest plans of the official drafting of the bill on tax privileges for enterprises of the petrochemical industry. Benefits it is planned to provide in the form of back excise taxes — are actually tax deductions. According to Borisov, the participants of the market “we are looking forward to this law”, and he himself can be called a lobbyist for the industry.

A similar mechanism already implemented in the refining. Entities included in the vertically integrated oil companies (VINK), get back the excise tax on oil purchased for refining for the domestic market. The crucial role played by damping the premium, to pay extra excise duty in case of excess of export prices (less transportation costs and export duties) over domestic.

However, the mechanism has the opposite effect. It is triggered when export prices are below domestic. In this case, the damper becomes negative, and the excise tax ceases to be the opposite. In the result, the tax burden on the company increases, prompting her to sell gasoline in the domestic market at a higher price.

Because of this mechanism of support was frequently criticized by industry participants, however, the government are not prepared to modify it as a negative damper serves to compensate for the budget because of the drop-down as a result of the tax maneuver of income.

The idea Borisov and co-authors of the bill, on the back of excise duty will be able to count oil and gas and chemical companies investing in the development of production and technological upgrading.

Video, photo All from Russia.

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