Taxes and Customs Duties as Instruments for Extracting Oil Rent into the State Budget: The Case of Russia

• DOI: 10.15826/jtr.2024.10.1.154
• Publication Date: 2024-04-26T05:37:32Z
• Authors: Dmitry Yu. Fedotov; ; Vitaly Yu. Burov
• Keywords: 0301 basic medicine; 03 medical and health sciences

For countries focused on the extraction and processing of natural resources, including Russia, a crucial task is to ensure rational distribution rent. The tax model applied rent should facilitate its optimal allocation budget without undermining motivation resource users invest. This study seeks gauge extent oil into Russian suggest strategies enhance efficacy redistributing state budget. Our hypothesis proposes that export customs duties, compared mineral tax, prove more effective in achieving desired redistribution from To assess extraction, we devised methodology based calculating generated Russia. method involves measuring difference between income by industry total expenses incurred sector companies. analysis reveals that, 2005 2022, up 87% Russia was extracted through payments However, recent years, degree has decreased 56%. decline can be attributed maneuver initiated since 2015, entailing reduction eventual elimination coupled with an increase rate. results indicate diminishing effectiveness rent-based taxation due reduced fiscal significance payments. Furthermore, their regulatory function, designed incentivize taxpayers for investment contributions, weakened. These findings offer valuable insights shaping policies lay groundwork further research this domain.