Page 14 - MEOG Week 27 2021

MEOG NEWS IN BRIEF MEOG

POLICY for collection in the coming years. Between following unprecedented interest in the
2011 and 2020, a total of NIS 486 million awards from across the energy industry.
Israel’s sovereign wealth was collected from the gas reservoirs, and a coincides with the announcement of a high-
The decision to extend the deadline
further NIS 225 million was collected in the
fund to start only in 2022 first half of 2021. The tax under the law is in level jury for this year’s awards that includes
Suhail Mohamed Al Mazrouei, UAE Minister
addition to companies tax collected by the Tax
The current forecast for tax collection on Authority, royalties on oil and gas collected of Energy and Infrastructure and Tarek EI
super-profits on gas and other natural by the Ministry of Energy, and royalties on Molla, Minister of Petroleum and Mineral
resources is well below earlier estimates. natural resources collected by the Accountant Resources, Arab Republic of Egypt.
The sovereign wealth fund that is meant to General in the Ministry of Finance. Fatema Al Nuaimi, Adipec Awards
accumulate billions of shekels for the welfare The Israel Citizens’ Fund set up by the Chairperson and CEO of Adnoc LNG said:
of Israeli citizens from taxation of the super- Sovereign Wealth Law of 2014 will manage “The global energy landscape is undergoing
profits of the Israel gas reservoirs will start to the additional tax revenues once they rapid change, and the oil and gas industry is
operate only in 2022, and not during 2021 as surpass NIS 1 billion. One year from the finding new and innovative ways to maximise
planned. start of its operation, the fund will be able the value and profitability of operations, while
This is because the amount collected in to distribute 3.5% of its annual revenue for meeting society’s expectations of affordable,
this form of taxation has not yet reached the social, economic and educational purposes in sustainable energy. Nowhere is this more
threshold for starting the fund - NIS 1 billion. accordance with proposals by the government, visible than in the UAE, which sits at the heart
So far, the Israel Tax Authority has collected subject to approval by the fund’s institutions, of the global energy industry and continues to
just NIS 741 million. The Tax Authority headed by its council. influence those who are shaping the future of
expects collection to cross the NIS 1 billion The Tax Authority estimates that total the sector.
threshold by the end of this year, but it will be revenues in nominal terms from the levy on “This year’s Adipec Awards reflect the
possible to operate the fund only in 2022. oil and gas profits (without the levy on profits transformational changes taking place within
This is a further postponement from the from other natural resources) will amount to our industry. They will honour and recognise
original date set for the wealth fund to begin just NIS 44-53 billion between 2021 and 2064. the companies and individuals, at the
to operate, which was in 2018. The start of the This is considerably below previous forecasts, forefront of capturing emerging opportunities,
fund has been put back several times, because which the Tax Authority attributes to a fall in driving industry change and embracing
of lower than expected revenue from some of the price of natural gas and the expectation an energy future based on digitalization,
the gas reservoirs. that prices will continue to fall. sustainability, research, innovation,
The Israel Citizens’ Fund is meant to GLOBES partnerships and young talent.”
accumulate all the state’s revenues from the TRADE ARABIA
tax on super-profits of the gas reservoir since
2011 (Sheshinsky Committee 1), and the COMPANIES
revenues from the super-profits tax imposed OIL
in extraction of natural resources since 2015, Adipec extends submission
such as potash, bromine, magnesium, and Price recovery boosts Iraq’s
phosphates (Sheshinsky Committee 2). deadline for awards
For the first time, the Israel Tax Authority June revenues
published official figures today on tax The deadline for submissions for the 2021
collection under the Law for Taxation of edition of the prestigious Adipec Awards As Iraq faced OPEC and the expectation of
Profits from Natural Resources and a forecast has been extended until Monday, July 12, limiting production to compensate for past

P14 www. NEWSBASE .com Week 27 07•July•2021