Russian parliamentary committee approves Transneft tax hike, hitting shares
MOSCOW, Nov 21 (Reuters) -The budget committee of Russia's parliament on Thursday approved to increase to 40% from 20% the tax on profits of state-owned oil pipeline monopoly Transneft TRNF_p.MM starting from 2025.
Transneft's shares in Moscow fell by more than 10% after tax rise was approved during a live-streamed committee meeting.
Russia is seeking to raise taxes as it needs to fund its military campaign in Ukraine. A major tax reform is expected to generate additional revenues worth 1.7% of GDP in 2025.
Economists argue this will not be enough.
Deputy finance minister Alexei Sazanov told the committee that the taxes are increasing for Transneft as it has a monopoly on the transportation of oil.
He also said that the tax increase may boost state budget revenue by between 20 billion roubles ($198 million) and 40 billion roubles per year, TASS news agency reported.
($1 = 101.0955 roubles)
Reporting by Darya Korsunskaya; Writing by Vladimir Soldatkin; Editing by Alexander Smith
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