bne:Chart – Energy sector dominates analysis of Russian tax revenue

By bne IntelliNews February 10, 2015

Henry Kirby in London -

 

With oil, fuel and gas accounting for 70% of Russia’s $450bn exports in 2014, it is no surprise that three of the five largest nominal tax contributions came from regions whose economies are heavily energy-focused.

As this week’s bne:Chart shows, the Khanty-Mansi region contributed just under RUB1.2tn and accounted for 49.5% of all federal mineral extraction tax (MET) receipts between January and October 2014 – the most recent available data from Russia’s finance ministry.

Moscow’s VAT and corporate profit tax receipts were the second and fourth largest federal contributions, respectively. The city’s profit tax alone accounted for more than half of all federal profit tax receipts. The concentration of services industries and large population density in the Moscow area are likely the main drivers behind its dominance in these fields.  

However, disentangling energy-related tax revenue from non-energy revenue is difficult, as the fiscal footprint of the energy sector is so pervasive in Russia, contributing to MET, profit tax, VAT and excise duties.

Despite coming top of the pile for nominal VAT and profit tax contributions, on a per-capita basis both Moscow’s profit tax and VAT receipts ranked third in the country.

The Yamalo-Nenets region and Sakhalin Oblast generated the highest per-capita VAT and profit tax revenues, respectively, with Yamalo-Nenets – where Gazprom’s main production fields are based – at RUB199,302 and Sakhalin Oblast at RUB54,428.

The Leningrad Oblast and West-facing port city of St Petersburg recorded the highest nominal and per-capita tax revenues for excise duties – likely a result of the port city being one of the largest outward trade gateways in Russia.

Certain types of tax revenues are received only by individual regions and are not recorded by the Ministry of Finance as contributing to federal receipts. These are: corporate property tax; individual property tax; land tax; vehicle tax; and personal income tax (PIT).

Use the bne:Chart below to explore regional contributions to federal tax revenues.

Click on the map to see a breakdown of a region’s tax revenue and hover over one of the bubbles to see how it compares to the rest of the country.

Use the menu on the map to isolate a specific region, then click on it to see its individual tax components. Select “All” on the map menu to go back to a nationwide view.

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