Government increased number of payers of oil export duties
ANA. July 15. KAZINFORM /Meiram Baigarin/ Kazakhstan is one of the largest exporters of oil, it ranks the 18th in the world. The income from oil and gas sector is currently the major source for the state budget. The sector is the main factor of country's economy development.Today when Kazakhstan faces great challenges on diversification of economy by means of its forced industrial-innovative development, the issue of increasing the budget of the country gains high importance.
Furthermore the global financial crisis decelerated economic development of our country.
At the July 13 sitting the Government took a decision to revise export duties on oil and oil products introduced in May 2008 that were at USD 109.91 per a ton at that time. Later it reached USD 203.8. It was planned to reduce it to 139.8 per a ton because of the oil prices fall in the world in December 2009.
There is no need for such rate now with the situation getting better in the world market. At the end of this June the Premier said that oil and oil products would be subject to duty again.
The new rates approved by the Government's Resolution have been developed in accordance with the Rules of calculation of customs duties rates on oil-based goods exported from the RK customs territory. This was approved by the Government's Resolution as of October 15, 2005.
The Resolution implies establishment of export duty on crude oil in the amount of USD 20 per a ton, light oil products - at USD 99.71 per a ton and dark oil products - at USD 66.47 per a ton.
Export duty is not applied to crude oil extracted in conformity with the Production Sharing Agreement concluded with the Kazakh Government or an authorized body until January 1, 2009, which underwent mandatory tax examination providing for exemption from payment of export customs duties on crude oil. Besides, crude oil extracted under subsoil use contracts is also free of export duties.
As Minister of Finances Bolat Zhamishev said those exporters that did not pay the duty before were subject to it now. In particular, Kazakh-American company TengizChevroil and the consortium headed by Italian company 'Eni' and British 'BG' that are engaged in developing one of the largest deposits in the world - Karachaganak are subject to export customs duties.
The Minister noted new export rates would significantly increase the budget of the state. The measure is expected to make USD 400 mln additional income this year.
The revision of export duties, expansion of subsoil users that are subject to export duties is step in fulfillment of the Presidential instruction regarding the harmonization of work conditions for all subsoil users in Kazakhstan especially in taxation.
Export duties established in Kazakhstan are not high. For instance, it is USD 248.8 per ton in Russia.
Kazakh Prime Minister noted that economy of Kazakhstan was out of crisis now and prices were close to their points of stabilization. Nevertheless, the introduction of export duties is justified in view of ensuring stability of economy development in post-crisis period.