Russia to increase duties on crude oil

Russia will raise export duties on crude oil and increase mineral extraction taxes to fund tax cuts for other industries as the government seeks to reduce the economy’s dependence on commodities.

The cabinet yesterday backed plans to boost duties on oil exports when prices exceed $20 a barrel and approved draft laws on cutting payroll taxes that are levied to help meet welfare costs, said Viktor Konnov, a government spokesman, in a telephone interview.

Russian President Vladimir Putin has demanded the government ramp up taxes on natural resources to take a bigger share of oil companies profits, letting Russia reduce the burden for other industries.