Kazakhstan plans tax incentives for subsoil users

ASTANA (TCA) — The government of Kazakhstan plans to introduce tax incentives for subsoil users under conditions of the economic crisis, Minister of National Economy Kuandyk Bishimbayev said at the conference “Actual problems of taxation” on September 22, the official website of the Prime Minister of Kazakhstan reports.

“Today, the economy in the oil industry has changed, and we understand that the current tax regime for subsoil users is hard in the changed circumstances. It is not known what will be the long-term level of oil prices, but they would not be the same in the next 5-7 years. We are entering into a new reality. Expectations, revenues and taxes to the National Fund of the mining sector and the sector of subsoil use have completely changed,” Bishimbayev said, commenting on possible benefits for subsoil users.

According to the Minister, companies do not have sufficient resources to invest now.

Bishimbayev said that some companies in Kazakhstan need to invest in order to maintain production at a certain level, but the current price levels do not allow doing it with the existing taxes. “We want to support companies with declining production, that is to provide additional resources without losing the current income,” he said.

At the same time, the minister noted decreasing demand for Kazakhstan’s raw materials as there are alternative sources of energy in the world.

According to the minister, it is necessary to move away from the taxation of income and switch to taxation of the financial result in order to attract new investments in the development of new deposits.

Sergey Kwan

TCA

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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