Tax Ministry reports on Russian oil companies' payments in Q2

Aug 07, 1999 02:00 AM

The Russian Tax Ministry announced that it had collected 4.9 billion rubles from domestic oil companies in the second quarter of this year.
By contrast, oil companies paid only 2.9 billion rubles in taxes on the first quarter of 1999.
Despite the improvement in collection, the ministry noted that oil firms' debt to the federal budget had increased by 3.2 billion rubles in the second quarter of the year. It did not give an exact figure for the arrearage.
Also, Tax Minister Aleksandr Pochinok announced that all 14 of Russia's vertically integrated oil companies had agreed to pay back taxes entirely in cash. No formal agreement on this issue has yet been signed, he said, but oil producers have said they are willing in principle to sign such a deal. The switch to full cash payment was made August 1, he said.
Oil company heads had previously agreed to begin paying all taxes in cash as of November 1 but are apparently ready to make the switch early. Pochinok noted that the share of cash in total payments had risen from 43% in January to 88% in July.
He further stated that Russia's biggest taxpayers -- including such natural monopoly companies as Gazprom and United Energy Systems (UES) as well as the oil producers -- were all following a schedule for payment of taxes agreed upon with the government. The Kremlin would therefore like to see these companies keep up with inflation by paying more taxes, he said. He did not elaborate.
Moscow is currently holding negotiations with Gazprom on making the switch to full payment of taxes in cash, Pochinok added. The gas monopoly had been scheduled to start paying all of its taxes in cash as of June 2000. Gazprom cannot make the switch immediately, he said, because its financial position is more complicated than that of the oil companies. Deliveries to domestic customers account for 75% of Gazprom's business, he noted, and the company's CIS customers have also racked up substantial debts.

Source: NewsBase
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