Ministry of Fuel And Energy Might Cancel Taxes on GenCos CapEx Surcharges

The Ministry of Fuel And Energy prepared a draft amendment to the law “On income taxation.” The proposal states that money accumulated by power generation companies (GenCos) from investment surcharges will be not recognized as income, and therefore will be not taxed. Alexander Paraschiy: At the moment all income raised by GenCos from special surcharges was subject to income tax, which automatically decreased the cash flow available for investments by 25%. However, since these taxes positively impacted the state budget’s income, previous governments did not hurry to remove this taxation. If the law is passed, GenCos will be able to direct more cash flow to reconstruction.