O. V. Pavlinova The Mineral Extraction Tax (MET ): Current State and Prospects of Development

Abstract: Since Russia has a resource based economy the tax on mineral extraction is one of the main sources of replenishment the budget of the Russian Federation. Minor changes in oil prices on the global market have a tremendous impact on the state budget of the Russian Federation. Thus, the problem of replenishment of the budget is becoming particularly important. So far the MET function was mostly of fiscal nature, its regulatory function went into the background, thus accumulating a lot of problems in the field of oil production. The article reveals the shortcomings of the tax on mineral extraction in Russia and discusses ways to improve it in current conditions. The study applies a systematic approach and statistical methods to evaluate the current state of the tax on the extraction of minerals as well as challenges and prospects for its future development. It draws conclusions on the quality of the RF tax policy in the field of taxation of oil production. The study reviews changes in the current legislation. Currently, there is an annual increase in absolute revenues from the mineral extraction tax to the federal budget and the growth of the share of tax in the structure of the budget. However, despite the positive dynamics of MET, the shortcomings of the existing taxation system in the oil production sector negatively affect the status and development of the oil industry.

Keywords: