Russia near commodity tax ceiling, deputy finance minister says

Russia's Deputy Finance Minister Alexei Sazanov said on Thursday the country was approaching the tax ceiling for commodity industries given what he called weak global demand for their products. Russia announced in 2022 massive oil and gas taxes, unprecedented in its corporate history, to tackle the budget deficit.

Russia's Deputy Finance Minister Alexei Sazanov said on Thursday the country was approaching the tax ceiling for commodity industries given what he called weak global demand for their products.

Russia announced in 2022 massive oil and gas taxes, unprecedented in its corporate history, to tackle the budget deficit. Total additional oil and gas tax revenues are planned at around 2 trillion roubles ($24 billion) from 2023 to 2025. "Of course, now the world economy has slowed down and this affects the demand for commodities. And in this regard, of course, the potential to increase the tax burden on the commodity sectors is rather limited," Sazanov said.

The oil and gas sector generates more than 40% of Russia's state budget. ($1 = 83.5075 roubles)