Home – Home – Jornals – ECO journal (ECOnomics and industrial Engineering) 2019 number 5

The US, Canada and the UK face global surplus of oil production and refinery capacity, large sovereign debt and fiscal consolidation in 2015-18. The article analyses special features of fiscal relations with oil industry faces in those countries, which may be useful for Russia. The research method of the article is a review of budgetary revenue structures, tax regimes, lists and effects of tax stimuli and budgetary subsidies for oil industry from publications of budgetary and tax authorities, nongovernmental and international organizations. The research highlights, that the tax structure on oil in analyzed countries is similar to Russia. The consolidated budget of Canada depends on oil revenues similarly to the Russian one, of the UK and the US - several times less. The total tax burden per barrel of crude oil or gasoline is 2 times higher in Russia than in the US, especially due to higher excise taxes on gasoline. Canada and the UK tax oil excavation less than gasoline consumption - significantly more than Russia, with some subsidies to vulnerable consumers. Investment tax credit and accelerated depreciation dominate among tax stimulus. Budgetary subsidies target few relatively small projects by royalty reductions, share capital investments and export financing. The US and Canada have no VAT, the UK provides zero VAT rate for export oriented oil refineries, without such payments and refunding as in Russia. The article concludes that Russian oil tax maneuver follows the three countries’ practices, and Russian excise taxes on gasoline should be twice higher than the 2018 level. With high tax burden and surplus oil production, the countries had to invent new stimulus for their oil industry, such as financial sanctions against Russian competition.