Authors : Aidar M. Tufetulov and Amur F. Yartiev
Abstract: The rational combination of a state tax policy and the interests of subsoil users is the basis for the positive potential innovative development of the fuel and energy industry. The current tax system in Russia for oil companies is predominantly fiscal one and like the other arms of government regulation is rather one-sided. The introduction and the implementation of an unbalanced budget system needs, aimed at meeting the immediate needs led to its permanent adjustments and unpredictability. Constantly changing legislation for oil companies increases the tax revenues to the state treasury, only by reducing the profits on investment costs of a subsoil user. The use of so-called “big tax maneuver” provides only a minimum return from one-time costs for a subsoil user. The reform of oil producing companies taxation is discussed at the moment and if the tax burden will continue to increase, it will lead to the unconditional curtail of new investment projects and hence to reduce oil production in the short term. The basis of the potential development for any industry is a stable predictable taxation in the long term which allows you to plan the development of industry and attract the necessary investment which unfortunately is not observed in the oil industry.
Aidar M. Tufetulov and Amur F. Yartiev, 2015. Oil Industry Taxation: History, Perspectives, the Effectiveness for a Subsurface User. International Business Management, 9: 903-908.