Belarusian Ambassador To Russia: We Do Not Have Those Exotic Schemes Against Tax Maneuver In Oil Industry

Will petrol prices grow in Belarus?

Belarus finds the consequences of Russia's tax maneuver in the oil industry to be quite painful, to reduce its effect will focus on accelerating the modernization of the refinery, but will not be able to provide support with the reverse excise, Belarusian Ambassador to Moscow Ihar Piatryshenka said in an interview to RIA Novosti.

Recently, the Russian government approved the final stage of the tax maneuver in the oil industry to decrease the export duty on oil from the current 30% by 5 percentage points per year in the course of six years, beginning with 2019. At the same time, the mineral extraction tax will be raised for oil, but only in the course of three years, until 2021. To prevent the growth of domestic prices for petroleum products or the emergence of a deficit, the maneuver provides for two mechanisms: a reverse excise on oil supplied for processing, and an additional damping excise, which takes into account the profitability of exports.

For Belarus, it means that the country will have to live with world oil prices, it might tighten the working conditions for both refineries and reduce budget revenues.

"Of course, it’s painful for us. First of all, because, according to the agreements, when processing oil, the export duties remain in the budget of Belarus. We are closely following the completion of the tax maneuver and, obviously, preparing for its possible economic consequences," – Piatryshenka said.

"We do not have enough opportunities for such exotic mechanisms as reverse excises, so we will focus on improving the efficiency of refineries. This is what will allow the industry to remain competitive in foreign markets," – he added.

At the same time, the Ministry of Finance of Belarus does not rule out the possibility of refusing to levy excises on automobile fuel.