Due to oil price growth receipts to state budget from AIOC in 2006 to exceed forecasts
Receipts to the state budget in 2006 as the profit tax from the Azerbaijan International Operating Company (AIOC), operating the Azeri-Chirag-Gyuneshli(ACG) oil field have been forecasted in the amount $300 million. These calculations have been made based on the oil price of $40 per barrel, planned in the budget, deputy Finance Minister Azer Bayramov
told journalists, Trend reports. However, due to the ongoing oil price rise which exceeds much the designed prices, receipts from AIOC will be much more, Bayramov thinks.
Under the contract for the ACG development, AIOC will commence the profit tax payment after covering all its expenses. AIOC is supposed to cover in 2006 remaining expenditures of $548 million under the world market average oil price of $40 per barrel and will receive pre-tax revenues amounting to $880 million.
РђIOC will pay profit tax at the rate of 25%, which is stipulated by the contract.
According to deputy Minister, last year AIOC was not a profit tax payer, however the companies, part of it, paid income taxes, subcontractors profit taxes.